ECO 316 Week 4 Chapter 21 The Conduct of Monetary Policy

This archive file of ECO 316 Week 4 Chapter 21 The Conduct of Monetary Policy comprises:

21.1 Multiple Choice Questions

1) By the end of the 1990s and 2000s,

2) Which of the following is NOT considered to be a goal of monetary policy?

3) Which of the following is considered to be a goal of monetary policy?

4) Inflation is an economic problem because it

5) Rates of inflation in the hundreds or thousands of percent per year are known as

6) Which of the following countries experienced hyperinflation during the 1920s?

7) The Employment Act of 1946 codified the federal government's commitment to

8) Most economists believe that a zero rate of unemployment

9) John Smith leaves his job in York to go to California in hopes of finding a better one. If John Smith is unemployed while searching for a job in California, economists would consider him to be

10) When all workers who want jobs have them and the demand for and supply of labor are in equilibrium,

11) Which of the following statements about the natural rate of unemployment is correct?

12) The unemployment that is caused by changes in the economy, such as shifts in manufacturing techniques, increased use of computers and electronic machines, and increases in the production of services instead of goods, is called

13) Sally Jones lost her job at a steel company because of a permanent decline in the demand for steel. Sally Jones is considered by economists to be

14) High employment spurs economic growth because high employment

15) When financial markets and institutions are not efficient in matching savers and borrowers,

16) The Fed was created

17) During the last two decades,

18) Federal deposit insurance

19) Interest rate fluctuations

20) Increases in interest rates are often blamed on

21) The Fed's goal of interest rate stabi...

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