(Solution)-Far better for central bankers to get out of the fine tuning business.

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1. "Far better for central bankers to get out of the fine tuning business. Instead they should try to keep ....." Complete this clipping.a) taxes low b) budgets balanced.c) money growth low d) government spending in check2. "The Fed based its monetary policy in the 1980s on the assumption that velocity would continue its upward trend. Had they assumed a constant velocity, money growth would have been ______ and inflation would have been ________ than what we actually experienced." Fill in the blanks.a) higher; higher b) higher; lower c) lower; higher d) lower; lower3. "Several bond issues will raise $400 million, with the central bank picking up at least $200 million. The central bank can also be counted on to take down more of the bonds than the planned $200 million it has announced if they seem to be selling badly."The $200 million purchase will cause the money supply toa) increase by $200 million b) decrease by $200 millionc) increase by $200 million times the money multiplierd) decrease by $200 million times the money multiplier

 

Solution ID:10086551 | Question answered on 16-Oct-2016

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