Once the FOMC meetings adjourn, the public is made aware of the FOMC's decision:
A. within five business days.
B. twenty-four hours after the meeting adjourns.
C. immediately after the meeting.
D. forty-eight hours after the meeting adjourns.
Answer: C
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In markets with asymmetric information
A) asymmetric information causes moral hazard and then it causes adverse selection. B) moral hazard causes adverse selection which in turn causes asymmetric information. C) asymmetric information causes adverse selection and then it causes moral hazard. D) adverse selection causes moral hazard which in turn causes asymmetric information.
Complaints are often made to the International Trade Commission concerning foreign "dumping" practices. These complaints typically claim that
A) U.S. firms are harmed by the unfair pricing of foreign exporters. B) foreign companies are charging exorbitant prices that are higher than the true value of the products. C) foreign companies are charging prices that are lower than prices they charge countries other than the U.S. D) U.S. consumers are harmed by the lack of quality control or health concerns in foreign countries. E) U.S. consumers cannot differentiate between the foreign and domestic goods.
In the two-period model with production, an increase in anticipated future total factor productivity
A) has no effect on domestic output, but reduces the current account surplus. B) increases domestic output and increases the current account surplus. C) reduces domestic output, and increases the current account surplus. D) has no effect on domestic output, but increases the current account surplus.
Which of the following groups of economies appear to have both a political consensus to hold inflation low and the economic tools to do so?
a. middle-income economies b. high-income economies c. low- and middle income economies d. middle- and high-income economies