58. “We at the Fed are frequently pressed by people to do things that would involve giving up contro

58. “We at the Fed are frequently pressed by people to do things that would involve giving up control over money creation without any apparent recognition on their part that 94that is what they are asking. We, of course, have to refuse.” Which of the following is notan example of such a request?a) adopt the monetarist rule b) produce an unemployment rate lower than the NRU.c) finance government deficits to avoid the higher interest rates they produce.d) effect an immediate lowering of the interest rate in an inflationary environment59. “There is little doubt that the key reason for this slide toward ever more inflation was an effort by public policy in most countries to achieve and maintain more output and employment from their economies than was consistent with price stability.” Which of the following is notan explanation for this?a) the government was increasing taxes higher and higherb) monetary policies were targeting unemployment instead of inflationc) monetary authorities increased their money supplies at too high a rated) lowering unemployment below the NRU requires accelerating inflation60. “The message from the central bank to the private sector is: Do not give in to inflationary psychology; Do not assume that you can easily accommodate cost pressures; and Do not expect monetary accommodation of accelerating energy price increases.” The central bank must have announced that it will be targeting ona) an interest rate b) an energy price c) full employment d) a money growth rate


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