“Autonomous monetary policy is more effective at changing output when lambda is higher.” Is this statement true, false, or uncertain? Explain your answer.

In response to the Covid-19 pandemic, the U.S. Federal Reserve has lowered the target federal funds rate to a rate of 0.0% to 0.25% (down from 1.5% to 1.75% in February). From a monetary policy perspective, what is the goal of lowering the target federal funds rate?

Using the book of Godley, Wynne, and Marc Lavoie. 2012. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth. 2nd ed. 2012 edition., Simulate a scenario of the deterministic version of the model where the interest rate increases by one percentage point. What is the effect of the increase in the interest rate? Discuss using the below plots.

Which of the following is NOT a tool of monetary policy?A) Open market operationsB) Fiscal policyC) Reserve requirementsD) Discount rate.

Demonstrate graphically and explain verbally that the impact of expansionary monetary policy on the economy depends upon the position of equilibrium output in relation to potential output.

In the model SIM of chapter 3 of the book of Godley, Wynne, and Marc Lavoie. 2012. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth. 2nd ed. 2012 edition., starting from a stationary state simulate the effect of an increase in government expenditure under four variations of the model: the simple deterministic model of the book. Discuss the trajectory of output from the original stationary state to the new one.

Monetary policy tools include...

Which of the following is NOT a tool of monetary policy?   Question 21 options:   a)  QE   b)  Ig   c)  ON RRP   d)  QT

A tight monetary policy is an indication that there is an on going or expected increase in the level of prices. * TRUE or FALSE?

Q)Which of the following measures is an example of expansionary monetary policy?Reduction of property taxReduction of unemployment benefitsLowering inflationLowering the repo rate