A clear-cut "rules versus discretion" debate is no longer possible because those economists advocating rules for ________, such as ________, must leave the Fed with plenty of discretionary power
A) policy instruments, the money supply
B) policy instruments, the inflation rate
C) target variables, the money supply
D) target variables, the inflation rate
D
You might also like to view...
According to economic theory, a person
A) wants to advance his or her own interests and will try to do it rationally. B) would not generate negative externalities if one has a properly-developed social conscience. C) acts in a profit-seeking way in the market process and in a social-seeking way in government processes. D) necessarily behaves as an individualist in markets and as a socialist in government.
An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is: a. greater than 1
b. less than 1 but more than zero. c. negative. d. exactly equal to zero. e. exactly equal to one.
Suppose that installing an overhead pedestrian walkway would cost a college town $150,000 . The walkway is expected to reduce the risk of fatality by 3 percent, and the cost of a human life is estimated at $10 million. The town should
a. install the walkway because the estimated benefit is twice the cost. b. install the walkway because the estimated benefit equals the cost. c. not install the walkway, since the cost is twice the estimated benefit. d. install the walkway, since the cost of even a single life is too great not to take action.
For a monopolist, when the output effect is greater than the price effect, marginal revenue is
a. positive. b. negative. c. zero. d. maximized.