Monetary policy affects interest rates but has little effect on inflation or business cycles.
举一反三
- Compared to using a fixed-rule monetary policy, using a feedback rule monetary policy:（） A: will stabilize aggregate demand. B: will reduce inflationary cycles. C: may make economic cycles more severe.
- According to the assignment rule, which of the following policy mixes<br/>is appropriate for a country with high inflation, a balance of<br/>payments deficit, and fixed exchange rates? ____. A: Expansionary fiscal policy and expansionary monetary policy B: Expansionary fiscal policy and contractionary monetary policy C: Contractionary fiscal policy and expansionary monetary policy D: Contractionary fiscal policy and contractionary monetary policy
- Monetary policy hasn’t been working because interest rates have been reduced to almost zero without the economy.
- Which of the following is not an effect of restrictive monetary policy（） A: higher real interest rates. B: lower real output. C: higher employment.
- 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