1) What are the goals of monetary policy according to the amended Federal Reserve Act? A) no unemployment, stable prices, and moderate long term interest rates B) no unemployment, no inflation, and moderate long term interest rates C) maximum employment, stable prices, and moderate long term interest rates D) maximum employment and no inflation   2) The Federal Reserve is charged with achieving these goals by A) choosing between maximum employment and stable prices in the long run. B) keeping interest rates as low as possible. C) keeping the growth rate of money and loans consistent with the growth rate of potential GDP. D) keeping the monetary base stable with little or no growth.

Suppose the economy is experiencing inflation. If the Federal Reserve enacts contractionary monetary policy, interest rates will likely   Multiple Choice   rise causing prices to decrease.   fall causing prices to increase.   fall causing prices to decrease.   rise causing prices to increase

The Federal Reserve Board influences the national economy by adjusting interest rates. 1) True 2) False

MULTIPLE CHOICE! ONLY answer! NO explanation! 1. If the inflation rate tends to go up, then which of the following is the appropriate monetary policy that the Fed should conduct?Open market sale which will increase interest rates and decrease money supplyOpen market purchase which will increase interest rates and decrease money supplyOpen market purchase which will decrease interest rates and increase money supplyOpen market sale which sale which will decrease interest rates and increase money supply 2. If the Fed conducts Open Market Purchase, then:price of bonds increase, interest rates decrease and money supply decreases.price of bonds decrease, interest rates increase and money supply decreases.price of bonds increase, interest rates decrease and money supply increases.price of bonds decrease, interest rates decrease and money supply increases. 3. Which of the following is called the Federal Funds rate?The interest rate at which banks borrow money from the Fed.the interest rate at…

Actions by the Fed to fight rising rates of inflation likely will initially: (a) reduce long-term interest rates; (b) expand the size of the Fed’s balance sheet; (c) cause the Treasury Department to issue fewer repurchase agreements; (d) increase short-term interest rates

)   According to the monetarists, policy makers should follow a monetary rule, which means that  A) the Bank of Canada should increase the money supply smoothly at a rate consistent with the economy's long-run average growth rate.  B) the Bank of Canada should keep interest rates stable.  C) the Bank of Canada should return to the gold standard.  D) Parliament should take over the Bank of Canada's open market powers.

During a period of high inflation, a country's central bank decides to use a monetarist model, which focuses on controlling the money supply to stabilize prices. The bank implements policies to reduce the growth rate of the money supply, based on the theory that inflation is primarily caused by excessive growth in money supply. The main goal of adopting a monetarist approach in this case is to:A) Increase the money supplyB) Control inflation and stabilize the economyC) Decrease government spending and taxesD) Encourage rapid economic growth Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

Suppose that the economy is producing above potential GDP and the Fed implements the correct change in monetary policy, but not until after the economy has passed the peak of the boom. Then A) the Fed's contractionary policy will result in too large of a decrease in GDP. B) the Fed's contractionary policy will result in too small of a decrease in GDP. C) the Fed's expansionary policy will result in too small of a decrease in GDP. D) the Fed's expansionary policy will result in too large of an increase in GDP.

Changes in the discount rate are more important than open-market operations in implementing monetary policy. 1) True 2) False

The Federal Reserve Bank relies on three tools to engage in monetary policy:   Question 7 options:   a)  the legal reserve requirements, the discount rate, and the federal funds rate   b)  taxes, government spending, and government transfers   c)  taxes, legal reserve requirements, and the discount rate   d)  government spending, the discount rate, and the federal funds rate