The Taylor rule
A: allows for strict inflation targeting as long as the output coefficient is zero
B: should only be followed if the economy is growing strongly
C: suggests changes in money growth in response to changes in the inflation rate
D: does not allow for strict inflation targeting
E: implies a strict monetary growth rule
A: allows for strict inflation targeting as long as the output coefficient is zero
B: should only be followed if the economy is growing strongly
C: suggests changes in money growth in response to changes in the inflation rate
D: does not allow for strict inflation targeting
E: implies a strict monetary growth rule
举一反三
- The rule that tells a central bank how to set interest rates in response to changes in economic activity is known as the A: federal funds rule B: interest rate rule C: monetary growth rule D: Taylor rule E: Friedman rule
- 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
- When the economy is operating at potential GDP, an unannounced decrease in the rate of growth of the money supply intended to reduce inflation will most likely lead to. lower inflation and: A: a decrease in output in both the short run and the long run. B: no change in output in both the short run and the long run. C: a decrease in output in the short run, and lower inflation but no change in output in the long run.
- The Fed operationalizes its goals by focusing on: A: core inflation and the output gap. B: expected inflation and U.S. dollar exchange rates. C: food and energy prices and the growth rate of real GDP.
- As the economy enters a boom we can generally expect that A: inflation will decrease with little change in the unemployment rate B: unemployment will increase and inflation will decrease C: nominal GDP will increase but only because of an increase in the price level D: inflation will increase and the unemployment rate will decrease E: output will increase with little change in unemployment or inflation