Q: Compare the monetary base to M2 on the grounds of controllability and
Compare the monetary base to M2 on the grounds of controllability and measurability. Which do you prefer as an intermediate target? Why?
See AnswerQ: When interest rates rise, how might businesses and consumers change their
When interest rates rise, how might businesses and consumers change their economic behavior?
See AnswerQ: The U.S. economy borrowed heavily from the British in
The U.S. economy borrowed heavily from the British in the nineteenth century to build a railroad system. What was the principal debt instrument used? Why did this make both countries better off?
See AnswerQ: What are the benefits of using a nominal anchor for the conduct
What are the benefits of using a nominal anchor for the conduct of monetary policy?
See AnswerQ: What methods have inflation-targeting central banks used to increase communication
What methods have inflation-targeting central banks used to increase communication with the public and increase the transparency of monetary policy making?
See AnswerQ: Why might inflation targeting increase support for the independence of the central
Why might inflation targeting increase support for the independence of the central bank to conduct monetary policy?
See AnswerQ: “A central bank with a dual mandate will achieve lower unemployment
“A central bank with a dual mandate will achieve lower unemployment in the long run than a central bank with a hierarchical mandate in which price stability takes precedence.” Is this statement true,...
See AnswerQ: “Unemployment is a bad thing, and the government should make
“Unemployment is a bad thing, and the government should make every effort to eliminate it.” Do you agree or disagree? Explain your answer.
See AnswerQ: “Discounting is no longer needed because the presence of the FDIC
“Discounting is no longer needed because the presence of the FDIC eliminates the possibility of bank panics.” Is this statement true, false, or uncertain? Explain your answer.
See AnswerQ: The benefits of using Fed discount operations to prevent bank panics are
The benefits of using Fed discount operations to prevent bank panics are straightforward. What are the costs?
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