The Federal Reserve does not target both the money supply and an interest rate because
A) it would be too confusing to Wall Street and would disrupt the financial markets.
B) the Fed cannot achieve a target for both the money supply and an interest rate at the same time.
C) it would be illegal according to the Federal Reserve Act.
D) it would be too easy for Wall Street to determine what policy the Fed is following and this would destabilize the economy.
B
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If the mangers of Big Scoops, a local ice cream parlor, acquire a dairy farm to produce the milk for their ice cream, the managers of Big Scoops are likely to experience all of the following except which one?
A) an increase in their required areas of expertise B) an increase in the complexity of coordination of Big Scoops C) an increase in managerial diseconomies D) the hold-up problem
The Sherman Act
A) prohibited banks from crossing states lines. B) prohibited railroads from transporting explosives. C) provided for the regulation of natural monopolies. D) declared that monopolization and restraint of trade were illegal.
According to the classification in the text, which of the following is not an industrially advanced country (IAC)?
a. United Arab Emirates. b. Israel. c. Greece. d. All of the above are IACs. e. None of the above are IACs.
The crowding-out effect implies that restrictive fiscal policy will
a. increase aggregate demand and employment. b. lead to a significant increase in the natural rate of unemployment. c. be highly effective against inflation. d. reduce real interest rates.