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In Response to an Unanticipated Tightening of Monetary Policy,the Fed

Question 60
Multiple Choice

In response to an unanticipated tightening of monetary policy,the Fed funds rate ________ at first,then ________ after 6 to 12 months. A)rises; returns most of the way to its original value B)falls; returns most of the way to its original value C)remains roughly unchanged; rises significantly D)remains roughly unchanged; falls significantly

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Q 61
In response to an unanticipated easing of monetary policy,output ________ at first,then ________ after about 4 months. A)rises; returns most of the way to its original value B)falls; returns most of the way to its original value C)remains roughly unchanged; rises significantly D)remains roughly unchanged; falls significantly
Q 62
In response to an unanticipated tightening of monetary policy,the price level ________ at first,then ________ after a year. A)rises; returns most of the way to its original value B)falls; returns most of the way to its original value C)remains roughly unchanged; begins to rise D)remains roughly unchanged; begins to fall
Q 63
Which of the following is not a major channel of monetary policy transmission? A)Interest rate channel B)Exchange rate channel C)Fiscal channel D)Credit channel
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