Every six weeks, the Federal Open Market Committee (FOMC) meets to discuss how to best adjust ________ to accommodate shocks that shift the level of ________
A) the equilibrium real interest rate; the target Fed Funds rate
B) the target Fed Funds rate; the equilibrium real interest rate
C) the 3 month T-bill rate; the inflation gap
D) target rate of inflation; money demand
E) none of the above
B
You might also like to view...
The primary focus of microeconomics is
A) to study how we managed to eliminate scarcity. B) our government's monetary policy. C) to examine the behavior and operation of the individual units or sectors that make up the economy. D) the levels of employment and inflation. E) to examine the operation of the entire (aggregate) economy.
The total utility from consuming five donuts is 9, 19, 30, 38, and 45 utils, respectively. Marginal utility begins to diminish after consuming the ____ donut
a. first b. second c. third d. fourth
Which of the following statements best describes the domestic beneficiaries of international trade?
a. Over time, the average person gains from international trade as a worker, but not as a consumer. b. Over time, the average person gains from international trade, both as a worker and as a consumer. c. Over time, the average person gains from international trade as a consumer, but not as a worker. d. Over time, the average person does not gain from international trade, either as a worker or as a consumer.
Jack and Diane each buy pizza and paperback novels. Pizza costs $3 per slice, and paperback novels cost $5 each. Jack has a budget of $30, and Diane has a budget of $15 to spend on pizza and paperback novels. Which consumer(s) can afford to purchase 3 slices of pizza and 4 paperback novels?
a. Jack only b. Diane only c. both Jack and Diane d. neither Jack nor Diane