Which of the following is NOT a result of monetary policy?
A: aggregate demand is affected, leading to a change in nominal GDP
B: the level of potential GDP will change
C: spending on investment and durable consumption goods is affected
D: the rates of unemployment and inflation are affected in the short run
E: real interest rates will remain unaffected in the long run
A: aggregate demand is affected, leading to a change in nominal GDP
B: the level of potential GDP will change
C: spending on investment and durable consumption goods is affected
D: the rates of unemployment and inflation are affected in the short run
E: real interest rates will remain unaffected in the long run
举一反三
- Which of the following is FALSE? A: in the long run, a central bank can effectively limit inflation B: in the long run, a central bank can do fairly little to stimulate real GDP C: in the long run, monetary policy has no effect on nominal GDP D: unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation E: a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run
- Which of the following is a FALSE statement? A: the very long run focuses on the growth of productive capacity B: in the very long run, the productive capacity is assumed to be given C: in the very short run, shifts in aggregate demand determine how much output is produced D: fluctuations in the rates of inflation and unemployment are important long-run issues E: at the full-employment level of output, capital is not used 100 percent
- By lowering short-term interest rates, a central bank can stimulate economic activity A: since it encourages more investment spending B: since more durable consumption goods will be bought C: but only in the short run D: but it may lead to a higher price level E: all of the above
- Which of the following is accurate? A: Monetary policy is neutral in both the short run and the long run. B: Though monetary policy is neutral in the long run, it may have effects on real variables in the short run. C: Monetary policy has profound effects on real variables in both the short run and the long run. D: Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.
- Which of the following is NOT a way in which a central bank can conduct its monetary policy? A: by establishing target interest rates and then undertaking open market operations to maintain them B: by buying and selling government bonds C: by making small policy changes and readjusting policies as needed D: by changing the rate of capital accumulation to influence aggregate supply E: by changing interest rates to influence spending on durable goods and investment