Chapter 40. Unmasking Interest Rates, Honky-Tonk Style

40.1

According to the video, how often does the Fed meet to set monetary policy?

Every two months.

Every three months.

Every six weeks.

Every four weeks.

The In the video, Japan’s prolonged economic problems are referred to as:

The Great Deflation.

The Great Contraction.

The Great Malaise.

The Great Recession.

What example is given in the video as a country that has experienced high inflation?

Weimar Germany.

Argentina.

Post-Soviet Russia.

Zimbabwe.

In the video, it is said that the Federal Open Market Committee:

Purchases bonds, thereby decreasing banks’ reserves.

Purchases bonds, thereby increasing banks’ reserves.

Sells bonds, thereby decreasing banks’ reserves.

Sells bonds, thereby increasing banks’ reserves.

According to the Taylor Rule, interest rates are set by:

A formula that includes inflation and GDP.

A formula that includes the exchange rate and GDP.

A formula that includes unemployment and GDP.

A formula that includes inflation and unemployment.