Central Bank Divergence: Fed, ECB, and Fiscal Policy

Central Bank Divergence: Fed, ECB, and Fiscal Policy

Assessment

Interactive Video

Business

University

Hard

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The video discusses the complexities of monetary policy, focusing on consensus building among policymakers, the asset purchase program, and the impact of currency fluctuations on the US economy. It highlights the debate between stock and flow in asset purchases and examines the Federal Reserve's cautious approach to fiscal stimulus projections.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key challenge faced by the Federal Reserve when making strong monetary policy decisions?

Ensuring unanimous agreement

Balancing stock and flow

Increasing the federal funds rate

Reducing quantitative easing

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the context of bond markets, what do investors typically prioritize?

Stock

Balance sheet size

Interest rates

Flow

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What economic factor can create difficulties for monetary policymakers aiming for inflation targets?

Stronger dollar

Weaker euro

Higher interest rates

Lower fiscal stimulus

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the Federal Reserve's stance on incorporating fiscal policy assumptions into their forecasts?

They disregard fiscal policy entirely

They have already included them

They are cautious and prefer to wait

They are eager to include them

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected change in the Federal Reserve's economic projections in response to potential fiscal stimulus?

Immediate adjustment to interest rates

No change in the dots

Reduction in quantitative easing

Significant increase in growth forecasts