A reduction in the rate of money growth will reduce the rate of inflation.
A: positive statement
B: normative statement
A: positive statement
B: normative statement
举一反三
- When the growth rate of the money supply is decreased, interest rates will rise immediately if the liquidity effect is _________ than the other effects and if there is _________ adjustment of expected inflation.
- The target inflation rate for inflation targeting is usually（）. A: Inflation rate in the medium and long term B: Inflation rate in the short term C: Average inflation rate D: Past inflation rate
- The relationship among real interest rate, nominal interest rate, and expected inflation rate is _________. A: real interest rate = nominal interest rate+ expected inflation rate B: real interest rate = nominal interest rate- expected inflation rate C: real interest rate = expected inflation rate - nominal interest rate D: nominal interest rate = real interest rate - expected inflation rate
- The inflation rate most likely relied on to determine public economic policy is: A: core inflation. B: headline inflation. C: index of food and energy prices.
- Which of the following actions by the Fed would reduce the money supply? A: an open-market purchase of government bonds B: a reduction in banks’ reserve requirements C: an increase in the interest rate paid on reserves D: a decrease in the discount rate on Fed lending