This topic contains a solution. Click here to go to the answer

Author Question: To offset the effect of households and firms deciding to hold more of their money in checking ... (Read 142 times)

Destiiny22

  • Hero Member
  • *****
  • Posts: 557
To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency, the Federal Reserve could
 
  A) raise government spending. B) sell Treasury securities.
  C) raise bank taxes. D) lower the required reserve ratio.

Question 2

Which of the following statements about inflation targeting is true?
 
  A) Inflation targeting would not reduce the flexibility of monetary policy to address other policy goals.
  B) Inflation targeting by the central banks in other countries has not typically lowered inflation.
  C) Inflation targeting would make it easier for households and firms to form accurate expectations of future inflation, improving their planning and the efficiency of the economy.
  D) Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

billybob123

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

B

Answer to Question 2

C




Destiiny22

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
Wow, this really help


Chelseyj.hasty

  • Member
  • Posts: 319
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

For a complete list of videos, visit our video library