MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
10th Edition
ISBN: 9781319467203
Author: Mankiw
Publisher: MAC HIGHER
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Question
Chapter 16, Problem 6QQ
To determine
Explain about the more independent central banks.
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Students have asked these similar questions
A microeconomist would study
a) how a nation's central bank controls the money supply.
b) how a national government establishes its budget.
c) how private firms make decisions to optimize profits.
d) what causes the rate of inflation to go up or down.
e) what causes the unemployment rate to go up or down.
A study conducted by Alberto Alesina and Lawrence Summers concluded that
countries with
had lower inflation rates than countries with
Group
of answer choices A. highly independent central banks; central banks that have
little independence B. low rates of unemployment; high rates of unemployment C.
no private banking system; an independent banking system D. a large government
debt; little to no government debt
In modern developed economies, central banks (like the U.S. Federal Reserve System) perform at least two major tasks; they:
Select one:
a.
conduct fiscal policy and serve as financial intermediaries.
b.
control the money supply and collect tax revenues.
c.
conduct fiscal policy and serve as lenders of last resort.
d.
control the money supply and regulate banks.
Chapter 16 Solutions
MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
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Similar questions
- the government of a country increases the growth rate of the money supply from 5 percent per year to 50 percent per year. what happened to prices?arrow_forwardCentral banks in developed countries are typically independent of the government. A. True B. Falsearrow_forwardWhich of the following is one of the Five Fundamental Questions? Multiple Choice How much should society save? Which products should be in scarce supply and which in excess supply? Who should appoint the head of the central bank? What goods and services will be produced?arrow_forward
- Persons who argue against the deliberate use of fiscal and monetary policies to smooth out the business cycle are referred to as a. nonactivists b. fine-tuners. c. activists. d. b and c e. none of the abovearrow_forwardCan you please help me?arrow_forwardI need the answer as soon as possiblearrow_forward
- a) Chose a tool the Central Bank (the Fed) might use to fight inflation. b) How would it be use? c) How would it cause inflation to fall?arrow_forwardi need the answer quicklyarrow_forwardWhat does the term exogenous money supply mean? a. The money supply is determined by external factors b. The money supply is controlled by households c. The money supply is determined by the central bank d. The money supply is determined by market forces.arrow_forward
- What is the main argument for having a Central Bank independent from the government for the purposes of monetary policy? Select one: a. An independent Central Bank would have more resources available to devote towards implementing monetary policy b. An independent Central Bank would be more knowledgeable about the state of the economy. Consequently, the Central Bank would be better suited to implementing monetary policy c. The Central Bank is more credible in its inflation and cash rate targets. Consequently, inflation expectations will adjust appropriately to monetary policy announcements d. Having an independent Central Bank prevents any economic trade-offs when making monetary policy choicesarrow_forwardWhat happens when a central bank pursues inflation targeting? A. The policy actions that central banks use to achieve the inflation target are kept secret. B. With inflation targeting, the United States would be more successful at achieving low and stable inflation. C. Many central banks achieve their inflation target at the expense of extremely high unemployment. D. The bank announces an explicit inflation target and the public is confident the bank's policy will achieve that target.arrow_forwardwhy a central bank be independent from governmentarrow_forward
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