True or False? Because the central bank uses the nominal interest rate as its policy instrument, the nominal interest rate is the transmission mechanism of monetary policy.

If the central bank desired to increase spending in the economy, using the instruments ofmonetary policy, explain how the central bank can indirectly achieve this?

Which of the following is a tool of the Federal Reserve’s monetary policy?   Group of answer choices changes in government spending on goods and services the buying or selling of government securities changes in laws that regulate commercial banks changes in tax rates of households and businesses

Please explain three main objectives of monetary policy?

The use of monetary policy is highly debated among classical and Keynesian economists. Where do they agree and where do they disagree with respect to monetary policy?

Expansionary monetary policy may prevent deep recessions with uncertain long-term consequences. However, as a result, firms, households, and the government accumulate significant amounts of additional debt, the payments for which may result in lower spending and investment and likely slower recovery. With that in mind, should central banks implement expansionary monetary policy or not?

Suppose the economy is in recession. Provide possible actions taken by central bank to use monetary policy to end the recession. Be sure to explain how a change in monetary policy will affect economic activity

Why would a central bank implement a monetary policy when the inflation level is higher than desired, and unemployment levels are lower than expected? Describe how a central bank might go about implementing such monetary policy, the subsequent effects this has on interest rates, the quantity of money in the market, and the process through which this affects the level of expenditure in the economy.

The following is TRUE about monetary policy EXCEPT,   A) It uses interest rate and money supply as monetary tools.     B) It manages the creation and flow of money and credit in the economy.     C) It relates to revenue and expenditure by government budget.     D) It aims to control the money supply and regulate the monetary sector.

Which of the following is true for monetary policy? Select one: a. As a contractionary monetary policy, the Bank of Canada can increase the target for the overnight rate. b. As an expansionary monetary policy, the central bank can buy bonds from the public to reduce a inflationary gap. c. The central bank can sell bonds during an economic downturn in order to stabilize the economy. d. The central bank can use open market operations to change the target for the overnight rate.