Which of the following examples shows the problem caused by the Fed’s lack of control over certain financial entities?
a. The Fed’s expansionary policy backfires because the government raises taxes.
b. The Fed’s contractionary policy backfires because the estimated MPC is inaccurate.
c. The Fed’s expansionary policy is neutralized by decreased consumer confidence.
d. The Fed’s contractionary policy is counteracted by the policies of Chinese banks.
d. The Fed’s contractionary policy is counteracted by the policies of Chinese banks.
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Refer to Figure 8A.1. When the economy reaches K
A) economic growth through capital deepening continues to increase. B) capital stock increases. C) depreciation equals saving. D) depreciation is zero.
A duopolist faces the entire market demand for its product if ________
A) it charges a lower price than its rival B) it charges a higher price than its rival C) it charges the same price as its rival D) it charges a price higher than its cost of production
If a price-taker industry is in long-run equilibrium, the market price in the industry will be just sufficient to cover the firm's average
a. total costs. b. fixed costs. c. variable costs. d. variable costs plus a 10 percent accounting profit.
When Zimbabwe needed to finance the war against Congo, the government issued bonds and forced the Central Bank to buy those bonds in exchange for newly-printed Zimbabwean dollars. This action prompted a hyperinflation of almost 100,000 percent. This is an example of a lack of:
A. central bank effectiveness in its monetary policy. B. central bank economists running the institution. C. central bank independence. D. central bank dependence.