What is a central bank?
For unlimited access to Homework Help, a Homework+ subscription is required.
What is quantitative easing?
Select one:
a. The central bank increasing interest rates at the zero money supply bound.
b. The central bank decreasing the money supply when interest rates are negative.
c. The central bank decreasing money supply at the zero interest rate bound.
d. The central bank increasing money supply at the zero interest rate bound.
e. The central bank increasing the money supply when interest rates are negative.
Both theory and experience suggest that _____ results in lower and less volatile annual rates of inflation.
a. having no central bank
b. having a central bank that is not independent
c. having a central bank that is highly independent
d. having a central bank that is partially independent
Suppose the central bank does not play by the 'rules of the game' but instead attempts to sterilize the gold inflows.
a. Define sterilization.b. Illustrate how a central bank sterilizes a gold outflow using a central bank T-account.c. Explain why a central bank would sterilize the gold outflow.