The Federal Reserve's policy reaction function provides information about:
A. economywide money demand and the output gap.
B. economywide money demand and the long-run target for inflation.
C. the short-run target for inflation and how aggressively target will be pursued.
D. the long-run target for inflation and how aggressively targets will be pursued.
Answer: D
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If the nominal exchange rate rises and price levels stay constant, the real exchange rate will
A) rise. B) fall. C) stay constant. D) could rise, fall or stay constant.
For a common resource, the equilibrium with no government intervention is such that ________ is less than ________
A) marginal private cost; marginal social benefit B) marginal social benefit; marginal social cost C) marginal private benefit; marginal social benefit D) total social benefit; total social cost
Another name for plurality voting is:
A. instant runoff voting. B. first-past-the-post voting. C. pair-wise majority voting. D. approval voting.
The dollar value of a retail (or front-end) disposal charge needed to restore efficiency to this market would be
Use thefollowing information for any or all of Questions 16 through 18. Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions: MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q a. $4 c. $6 b. $2 d. $20