Inflationary pressures caused the FOMC to increase the federal funds rate by ¼ of a percentage point in June 2004, and by exactly the same amount at every subsequent FOMC meeting through June of 2006. Theses actions
A) caused an upward movement along the monetary policy curve.
B) caused a downward movement along the monetary policy curve.
C) shifted the monetary policy curve upward.
D) shifted the monetary policy curve downward.
A
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One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
The use of foreign exchange reserves to keep exchange rates constant over time is called
A. barter exchange system. B. a fixed exchange rate system. C. the Bretton Woods system. D. a floating exchange rate system.
Which of the following regions obtained most of its imported goods from the United Kingdom?
a. the New England colonies b. the Middle colonies c. the upper Southern colonies d. the lower Southern colonies e. All of the above.
Which of the following is true of the Federal Reserve System? a. It is one central bank located in Washington, DC
b. It was created just before World War II. c. All Federal Reserve banks are required to also become state banks. d. With the formation of the Fed, the power to issue bank notes was taken away from national banks and turned over to the state banks. e. It was notably unsuccessful in averting the Great Depression.