Central banks prefer to fix the ____ and accept the resulting _____?

Related Mcqs:

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

A. rise by an amount that depends on the bank’s reserve ratio B. rise by less than the amount of the deposit C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio D. fall by exactly the amount of the deposit as long as the … Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the...

According to the simple Keynesian view the aggregate supply curve is ?

A. downward sloping over all levels of output B. upward sloping over all levels of output C. horizontal until it reaches full capacity and then becomes vertical D. vertical until it reaches full capacity and then becomes horizontal...

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

A. Suffer even more B. not be reduced as much as it would have been C. be replaced by foreign investment D. be replaced by consumer spending...

The three main tools of monetary policy are ?

A. fiat, commodity and deposit money B. Open-market operations reserve requirements and the refinancing rate C. The money supply, government purchases and taxation D. Government expenditures taxation and reserve requirements E. Coin, currency and demand deposits...

Each point on the IS curve represents the equilibrium point in the ?

A. goods market for the given interest rate B. goods market for the given level of government spending C. money market for the given level of the money supply D. money market for the given value of aggregate output...