To stop hyperinflation,Group of answer choicesall of the given choices is correctstop printing moneythe central bank must reduce the rate of money growthsell treasury bonds

Theoretically, to eliminate a recessionary gap, the Fed could ____________ the money supply, and to eliminate an inflationary gap, the Fed could _____________ the money supply.Group of answer choicesincrease; decreaseincrease; increasedecrease; increasedecrease; decreasenot change; not change

Which of the following will reduce the inflation rate in the medium run? Group of answer choices a permanent reduction in the price of oil a large budget surplus a permanent reduction in inflation target all of the above none of the above

If a central bank adopts one or a combination of nominal anchors, it loses ____ in the long run.[Hint: see page 13-19 of lecture 3C] Group of answer choicesthe control over real GDP growth ratethe control over inflationthe control over exchange ratesmonetary autonomy

To increase the money supply, the central bank can _____________.a.Cut taxesb.Purchase bonds in the open-marketc.Encourage people to held more cash (currency in circulation)d.Increase the government spending

Which one of the following measures of the Central bank would not lead to reduction of money supply?A.Imposing regulations to increase minimum reserve ratio of the banksB.Purchasing of government bonds from banksC.Selling of government bonds to the publicD.Increasing of cash rate (Policy rate)