menu
Sign up

To Avoid Falling into a Liquidity Trap, Most Central Banks: A

Question 168
Multiple Choice

To avoid falling into a liquidity trap, most central banks: A) seek a positive but small inflation rate rather than zero inflation. B) target inflation rather than the money supply. C) conduct open-market operations to change the money supply instead of changing the discount rate. D) aim at a target of zero inflation so that inflation expectations are zero too.

Related questions
Q 169
When Fed officials worried about the possibility of "Japanification" in the United States, it meant that they were worried that the U.S. economy would: A) grow faster than the economy of Japan after World War II. B) accumulate large trade surpluses, like Japan. C) fall into a period of hyperinflation. D) fall into a deflationary trap.
Q 170
(Figure: Short-Run Phillips Curve) Refer to Figure: Short-Run Phillips Curve. SRPC2 is based on an expected inflation rate of: A) zero. B) 1%. C) 2%. D) 5%.
Q 171
(Figure: Short-Run Phillips Curve) Refer to Figure: Short-Run Phillips Curve. SRPC1 is based on an expected inflation rate of: A) zero. B) 1%. C) 2%. D) 3%.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved