Interest rates can be measured more accurately and more quickly than the money supply. Hence an interest

Question:

Interest rates can be measured more accurately and more quickly than the money supply. Hence an interest rate is preferred over the money supply as an intermediate target. Do you agree or disagree? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

See More Books

Question Posted: Aug 12, 2012 04:27 AM

See More Questions

Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the reserve aggregates as a policy instrument. Do you agree or disagree?...
Do you agree or disagree that project organizational forms encourage peer-to-peer communications and dynamic problem-solving?
Do you agree or disagree with Olivias father that public accountants should keep their professional and personal lives strictly separate? Explain.
An investment project provides cash inflows of $710 per year for 9 years. Required: What is the project payback period if the initial cost is 3,550?
Is it possible to completely remove residual stresses in a piece of material by the technique described in Fig. 2.32 if the material is elastic, linearly strain hardening? Explain.
Consider the state $\left|\chi_{1,2}^{a} ightangle=\left|\psi_{1,2} ightangle+a\left|\phi_{1,2} ightangle$, for an arbitrary $a \in \mathbb{R}$. When is it separable? Calculate $ho_{A}$ and...
A strut is exposed to a hot airflow. It is necessary to run experiments to determine the average convection heat transfer coefficient $\bar{h}$ from the air to the strut in order to be able to cool...
This problem requires the use of ACL software, which is included in the CD attached to the text. Information about installing and using ACL and solving this problem can be found in Appendix, pages...
Asking an applicant/candidate if they have children, or plan on having children, is an illegal question. Does anyone know how organizations ascertain information like this without asking the illegal...
1. Why does ERP customization lead to so many headaches when it is time to upgrade? 2. Why were the systems customized in the first place? 3. Cutting payments outright to ERP vendors may not be...
Compare the monetary base to M2 on the grounds of controllability and measurability. Which do you prefer as an intermediate target? Why?
What methods have inflation-targeting central banks used to increase communication with the public and increase the transparency of monetary policymaking?
A portion of the work sheet of Habib Company for the year ended December 31 follows. Required 1. Determine the entries that appeared in the Adjustments columns and present them in general journal...
12. Assuming that Nc = Ny = 2.8 x 1025 cm-, 3 - (a) How does the temperature effect the intrinsic carrier concentration? (b) Find the intrinsic carrier concentration at room temperature for the...
1 . What are the three traditional organization designs? Explain each one. 2 . What are the major contemporary organizational designs? Explain.
Switching costs may: drive early entrants out of the market. make it easy for later entrants to win business. make it difficult for later entrants to win business. give later entrants a cost...
A girl, standing on a bridge, throws a stone vertically downward with an initial velocity of 16.0 m/s, into the river below. If the stone hits the water 1.80 seconds later, what is the height of the...
How does an organization gain trust for an overseas venture? Explain
True Or False In a personal injury case in which the plaintiff has made her medical problems the subject of litigation, all of their medical records are subject to subpoena by the defendant.
A sample statistic will not change from sample to sample. Determine whether the statement is true or false. If it is false, rewrite it as a true statement.
Polands PM Labels Under-Spending NATO Countries Free Riders NATOs target is for its 29 member countries to spend 2% of GDP on defense. Polands prime minister, Mateusz Morawiecki, says that Western...
Why is it unlikely that the policy recommendation put forth by the chair of the Board of Governors would ever be voted down by the rest of the FOMC?
In what way does the Federal Reserve have a high degree of instrument independence? If it has a specific mandate from Congress to achieve "maximum employment and low, stable prices," then how does...
Should the Federal Reserve be subject to periodic auditing of its policies, procedures, and finances? Why or why not?
The Chaldean Riverfood Market has sales of $38,200, current assets of $8,100, net income of $2,600, fixed assets of $12,500, total debt of $10,600, and dividends of $915. What is the sustainable...
You found out that mow you are going Lo receive payments of 59,000 for the next 11 years. You will receive these payments at the beginning of each year The anmweal interest rabe will remadn constant...
b. Draw a profit or loss graph for selling a call contract with an exercise price of $13 and a $4 selling price (the premium). You may assume that the option is being evaluated on its expiration...

Interest rates can be measured more accurately and more quickly than the money supply. Hence an interest

Question:

Step by Step Answer:

Disagree Although nominal interest rates are measured more accurately and more quickly than the mo...View the full answer

Economics of Money, Banking and Financial Markets

Students also viewed these Banking questions