The Friedman Rule is optimal because
A: Households would be able to buy more as prices decrease.
B: The central bank has better control of the money supply.
C: Money is neutral.
D: Households are indifferent between holding bonds and money.
A: Households would be able to buy more as prices decrease.
B: The central bank has better control of the money supply.
C: Money is neutral.
D: Households are indifferent between holding bonds and money.
举一反三
- When conducting an open-market sale, the Fed () A: buys government bonds, and in so doing increases the money supply. B: buys government bonds, and in so doing decreases the money supply. C: sells government bonds, and in so doing increases the money supply. D: sells government bonds, and in so doing decreases the money supply.
- What sort of event could lead to a simultaneous decrease in the rates of inflation and unemployment? A: a decrease in money supply B: an increase in money supply C: an adverse supply shock D: a decrease in material prices E: restrictive monetary policy following an adverse supply shock
- The following is the expansionary monetary policy is（ ）. A: Increase money supply B: The central bank conducts reverse repo operations on the open market C: Reduce the rediscount rate D: Lower the benchmark deposit rate E: Central Bank issues bonds
- The school of money believes that monetary policy is mainly transmitted through changes in the amount of money. The increase in the supply of money makes people spend more money on expenditure, which eventually causes changes in total supply and demand.
- If a country is confronted with the outflow of foreign exchanges and its central bank keeps selling foreign exchanges, the policy of ( ) can be adopted to stabilize money supply. A: Increasing rediscounting and relending B: Increasing the central bank notes issued C: Selling government bonds D: Raising required reserve ratio