The Fed generally announces what it is doing with monetary policy in terms of a target for the:
A. discount rate.
B. monetary base.
C. reserve requirement.
D. federal funds rate.
Answer: D
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How do automatic stabilizers work to mitigate fluctuations in the level of economic activity?
What will be an ideal response?
A profit center
a. Is very complicated to run and manage b. Doesn't require a lot of attention from executives at the firm's headquarters c. Requires the parent company's highest degree of attention d. Does not properly incentivize the managers when it comes to their own division's performance
Which of the following would be a credit in the U.S. balance of payments?
a. the purchase of a German car by an American b. the purchase of insurance from Lloyds of London by a U.S. resident c. a trip to Japan by an American student d. a short-term loan extended to a South American country by the United States government
Output growth is defined as the growth rate of output
A. per person in the economy. B. per worker in the economy. C. of the entire economy. D. for capitalist economies.