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.

Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle of economic activity (business cycle). Based on this, answer the following questions: a) Explain what monetary policy is appropriate to apply when there is a decline in GDP, economic growth slows and there is a decline in the prices of goods? b) Explain what monetary policy is appropriate to apply when there is an increase in the amount of real output or economic growth and an increase in the price of goods? Explain!

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

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?

Explain why low levels of economic confidence may hinder the effectiveness of 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?

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.

Which of the following best describes the conduct of monetary policy? The Fed changes interest rates so as to affect aggregate demand. The Fed changes interest rates in order to affect the money supply. The Fed changes tax rates so as to affect aggregate demand. The Fed changes the money supply in order to affect the level of interest rates.

Discuss what monetary policy is. Discuss different instruments of monetary policy.

Which of the following is NOT an example of monetary policy to restrict aggregate demand? a)Raising interest rates b)Reducing money supply c)Rationing credit d)Increasing income tax