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Most Keynesians Suggest That the Fed

Question 81
Multiple Choice

Most Keynesians suggest that the Fed A)use discretion in setting monetary policy. B)use fiscal policy to combat unemployment in the short run. C)follow a rule,such as keeping the money growth rate at 3%,regardless of the state of the economy. D)use fiscal policy to combat inflation in the long run.

Related questions
Q 82
The Taylor rule relates A)the nominal Fed funds rate to inflation over the past year and the deviation of output from full-employment output. B)the growth rate of the monetary base to the growth rate of nominal GDP and the change in velocity over the past year. C)the nominal Fed funds rate to the growth rate of nominal GDP and the change in velocity over the past year. D)the growth rate of the monetary base to inflation over the past year and the deviation of output from full-employment output.
Q 83
According to the Taylor rule,if inflation in the last year was 6% and output was 2% below its full-employment level,the nominal Fed funds rate should be A)3%. B)5%. C)7%. D)9%.
Q 84
According to the Taylor rule,if the inflation rate in the last year was 2% and output was equal to its full-employment level,the nominal Fed funds rate should be A)3%. B)4%. C)5%. D)6%.
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