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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1) What are the goals of
A) no
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.
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