The ultimate goal of U.S. monetary policy is: Interest rate stability. Economic growth with low inflation. Zero unemployment. A stable money supply. Steady growth in bank reserves
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- The ultimate goal of U.S.
monetary policy is:- Interest rate stability.
Economic growth with low inflation.- Zero
unemployment . - A stable money supply.
- Steady growth in bank reserves
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- Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle of economic activity (business cycle). Based on this, answer the following questions: a) Explain what monetary policy is appropriate to apply when there is a decline in GDP, economic growth slows and there is a decline in the prices of goods? b) Explain what monetary policy is appropriate to apply when there is an increase in the amount of real output or economic growth and an increase in the price of goods? Explain!What will an expansionary monetary policy do when the economy is in equilibrium? have no effect on both unemployment and inflation. reduce unemployment, but increase inflation. reduce unemployment, but have little effect on inflation. reduce both unemployment and inflation.Monetary policy is defined as the: adjustment of interest rates to influence economic conditions. implementation of ceilings on the federal funds rate in the economy. change in government spending to change economic conditions. change of the tax code to achieve economic changes.
- Which of the following is considered to be a relatively drastic tool of monetary policy? altering the reserve requirements quantitative easing altering the discount rate reducing the money supplyWhich of the following is an example of monetary policy? The government cuts taxes Defense spending is cut to balance the budget The U.S. Treasury Department issues bonds to finance debt The federal reserve buys bonds in the open marketWhich of the following are objectives that the Federal Reserve tries to achieve when setting monetary policy? Check all that apply Economic growth Price stability Zero inflation Interest rate stability
- Current U.S. monetary policy is best described as: Aimed at keeping inflation low and stable and growth high and stable Determining the denominations of a country's currency One of the most important functions of Congress Attempting to keep inflation constant at zero percentMonetary policy helps control output, inflation, and employment.Response option group True FalseWhich of the following is NOT one of the three tools used by the Fed to implement US monetary policies? discount rate printing more money open market operations reserve requirement regulations