The difficulties associated with selecting appropriate policy tools are hard during normal economic times.

True

False

Good decisions require...

	A.	good data
	B.	data
	C.	bad data
	D.	perfect data

Central planning fails because it abolishes the mechanism by which consumers and producers coordinate their activities.

True

False

Monetary disruption can seriously undermine economic calculation and coordination because...

	A.	government authority
	B.	cash reserve
	C.	relative price
	D.	money supply

Central banks know the public's demand for money.

True

False

Monetary authority simply do not have the real-time knowledge to measure and predict changes in demand for money nor can this knowledge ever be approximated even with hundreds of economist collecting data and refining models

True

False

Inflation impairs economic efficiency in part because people have difficulty separating movements in relative prices from movements in the general price level.

True

False

Uncertainty and guesswork still characterize decision-making at the FED.

True

False

Coordination of consumption and production planning is the ultimate economic justification for market economies. That discretionary central banking necessarily impairs this process is a significant strike against it.

True

False

Once objectives and targets are agreed upon by the monetary authority then faces the technical problem of selecting...

	A.	objectives
	B.	targets
	C.	instruments
	D.	models