If investment spending is interest-sensitive and highly unstable, the Federal Reserve could minimize fluctuations in income by targeting
A) velocity.
B) the interest rate.
C) the money supply.
D) government debt.
C
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Which of the following statements is true? If the marginal product of labor diminishes,
a. average fixed cost rises b. average variable cost is constant c. marginal cost rises d. average total cost must rise e. total cost rises at a diminishing rate
We would expect, all else equal, that:
A. lower taxes would reduce unemployment. B. higher taxes would reduce unemployment. C. taxes would have no effect on unemployment. D. taxes would be negatively related to unemployment.
Stanley Jevons accurately predicted the inevitable bankruptcy of England's coal industry
Indicate whether the statement is true or false
Some economists believe that the Asian crisis in 1997
A) could have been avoided if stronger action had been taken by major countries and international agencies. B) was inevitable since most of the economies were experiencing slow economic growth. C) was made worse by the refusal of the IMF to take any actions. D) was necessary to rid those economies of inflation.