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Multiple Choice Quiz
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1
The interest-rate channel and the exchange-rate channel are the traditional channels of the monetary policy transmission mechanism.
A)True
B)False
2
An easing of monetary policy results in a decrease in household net worth.
A)True
B)False
3
When the central bank reduces its target interest rate the stock and real estate markets are likely to boom.
A)True
B)False
4
As a result of better information, it is now easy for policymakers to distinguish between temporary and permanent changes in real growth.
A)True
B)False
5
Deflation is always a serious economic problem.
A)True
B)False





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