Monetary authority simply do not have the real-time knowled
Monetary authority simply do not have the real-time knowledge to… Monetary authority simply do not have the real-time knowledge to measure and predict changes in demand for money nor can this knowledge ever be approximated even with hundreds of economist collecting data and refining modelsTrue False Choose all of the following that, are destroyed without private property.A. market pricesB. profit loss calculationC. informational feedback loopD. economy-wide coordination Central bank models assume the economy has no financial system, therefore…A. economic crisis originating in the financial system is impossibleB. they do not account for their own actions on the economyC. economic growth is impossibleD. they cannot estimate the amount of money in the economy Given the impossibility of measuring and predicting the demand for money discretionary Central banking will generate monetary disequilibrium as a regular matter of course as the money supplied by the central bank periodically fall short or exceeds money demanded by the publicTrueFalse Why does money play a crucial role in economic coordination, accounting, and planning?A. It doesn’t.B. It is the measure of GDP.C. It is one half of all exchanges.D. It is the key to strategic planning. Haphazard financial regulation is most likely to emergeA. following financial crisisB. when congress is in sessionC. during normal financial timesD. when regulation is outdated or very old Good decisions require…A. perfect dataB. bad dataC. dataD. good data Technical problems _______ by better models and data.A. will be unchangedB. may be changedC. may be lessenedD. may be increased Financial regulation as a result of financial crisis is likely to…A. adjust the amount of monetary supplyB. predict the next crisisC. over-emphasize combating the perceived causes of the most recent crisis.D. better prevent future crisis The need to adjust the money supply in accordance with changes in money demand represents a ______ and ________ knowledge problem for monetary authorities.A. substantial; insurmountableB. minor; insurmountableC. minor; solvableD. substantial; solvable Business Economics Microeconomics MACROECONO 1005
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