If the central bank pursues a monetary policy that is more expansionary than what firmsand people expect, then the central bank must be trying toA) boost output in the short run.B) constrain output in the short run.C) constrain prices.D) boost prices in the short run.

Which of the following actions of a central bank would decrease the money supply in the economy?A.Increase the target interest rateB.Decrease the minimum reserve requirement.C.Reduce the interest rate paid on bank reserve.D.Buy bonds through open market operations.

Which of the following policy actions by a country’s central bank would increase the money supply in the economy?a.Decreasing the policy rate.b.Increasing the minimum reserve requirements.c.Selling government bonds through open market operations.d.Raising the interest paid on bank reserves deposited with the central bank.

Which action taken by a central bank would reflect expansionary monetary policy?A.Raising the interest that it pays to banks on the balance of their reservesB.Selling treasury securities to banks to reduce the money supplyC.Lowering the discount rate to provide more loans to banksD.Raising reserve requirements for all banks

For this question, assume the central bank controls the interest rate and the economy is initially operating at the natural level of output. A reduction in taxes must cause:Group of answer choicesan increase in investment in the medium run.a reduction in investment in the short run.no change in investment in the medium run.an increase in investment in the short run.none of the above

Which of the following actions of a Central Bank would increase the money supply in the economy? (Tick all that apply).This is a multi answer question. You can select one or more options as the answer.A.Unconventional monetary policy action through asset buyback program.B.Increasing the policy rates by the Central Bank.C.Increase in term funding facilities to financial institutions with a lower interest rate.D.Central Bank providing forward guidance to the market indicating higher future interest rates.