Discretionary monetary policy is when the monetary authority:
a. does not commit to future monetary actions.
b. never produces a monetary surprise to households.
c. commits to future monetary actions.
d. always behaves in a predictable way.
Ans: a. does not commit to future monetary actions.
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Refer to Table 14-2. Suppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?
A) to signal to each other to share the market equally B) to signal to each other that they will not hesitate to initiate a price war C) to signal to each other not to charge below the current low price D) to signal to each other that they intend to charge the high price
Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
a. the opportunity cost of growing oranges is higher in Florida than in Georgia. b. Georgia has a comparative advantage in producing oranges. c. Florida has a comparative advantage in producing oranges. d. total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.
A government, based upon its policy decisions, can determine the position and shape of the production possibilities frontier that the economy faces.
Answer the following statement true (T) or false (F)
What is the relationship between marginal utility and an individual demand curve?
What will be an ideal response?