During 2003, the Federal Reserve began to openly discuss deflation. Their comments suggested they
A. knew it was something to watch because of the Japanese experience of the 1990s, but did not alter policy significantly to combat it.
B. were neutral about whether deflation would be a good thing.
C. were enthusiastic about the possibility.
D. knew it would be a disaster, so they immediately cut the target federal funds rate by 5 percentage points to avoid the possibility.
Answer: A
You might also like to view...
According to Robert Reich, Secretary of Labor in the Clinton administration,
A. the identity of American companies is clear, and laws should be written accordingly. B. foreign companies are clearly different from American companies. C. multinational companies have clear bases of operations, which form their identity. D. it is almost impossible to define the nationality of a multinational company. E. identifying the country of origin of a product is almost impossible but essential for proper regulation.
The income effect of a price change is depicted by
a. a parallel shift of the budget constraint at the old set of prices. b. a parallel shift of the budget constraint at the new set of prices. c. a movement along the budget constraint holding the level of satisfaction constant. d. not observable and is therefore neither a shift nor a change in the slope of the budget constraint.
Nominal net farm income ________ dramatically during the 2007-2009 great recession
Fill in the blank(s) with correct word
Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of producers restricted diamond sales to maximize profits. De Beers and its association was "the only game in town" and had what is known as
A. a duopoly. B. perfect competitor. C. monopolistic competitor. D. a cartel.