An appropriate policy response by a central bank to an increase in the inflation rate is to
A) increase bank reserves
B) lower the federal funds rate
C) buy government bonds from the public
D) sell government bonds to the public
E) none of the above
Correct Answer:
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Q1: When conducting expansionary monetary policy, central banks
Q3: The U.S.Fed "sets" interest rates by
A)announcing a
Q4: Many economists believe that
A)most short-term stabilization of
Q5: Monetary policy is best conducted by
A)focusing on
Q6: If a central bank wants to avoid
Q7: Which of the following is NOT a
Q8: The U.S.Federal Reserve's Open Market Committee (the
Q9: If a central bank is uncertain about
Q10: The U.S.Fed can most effectively achieve an
Q11: Central banks generally conduct their monetary policy
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