Which of the following is FALSE?
A) The effectiveness of monetary policy is limited by lags in its implementation.
B) Contractionary monetary policy is designed to increase aggregate demand.
C) If the Fed follows a monetary rule, it will increase the money supply consistently at a smooth rate.
D) Interest rates and bond prices are inversely related.
Correct Answer:
Verified
Q30: Economists who support a monetary rule
A) believe
Q31: If the Fed chooses to keep the
Q32: An increase in bond prices is usually
Q33: If you buy a bond which pays
Q34: An excess supply of money will
A) decrease
Q36: The direct effect of changes in the
Q37: For the Fed to attract buyers for
Q38: To increase aggregate demand, the Fed would
A)
Q39: In the short run, an increase in
Q40: Increases in the discount rate
A) are a
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