Which of the following are NOT Federal Reserve monetary policy goals?
A) moderate long-term interest rates
B) price level stability
C) maximum employment
D) zero percent unemployment.
Ans: D) zero percent unemployment.
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The Federal Reserve cut the federal funds rate seven times between September 2007 and March 2008. What event led the Fed to make these reductions in the federal funds rate?
A) The chairman of the Federal Reserve System persuaded members of the Federal Open Market Committee to lower interest rates in order to reduce the price of oil in international markets. B) During this period there was a substantial reduction in the demand for housing. C) It was in response to reductions in the discount rate, which was also lowered seven times over the same time period. D) Several large investment banks failed during this time period.
For most of the unemployed, unemployment spells are ________
A) longer than a year B) longer than 10 years C) permanent D) shorter than three months
Economists
a. agree that the costs of moderate inflation are small. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high. b. agree that the costs of moderate inflation are small. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high. c. disagree about the costs of moderate inflation. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high. d. disagree about the costs of moderate inflation. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high.
Fixed costs faced by farmers typically include the following, except:
A. Family labor B. Fertilizer C. Property taxes D. Interest and rent payments