If a policy change by the Fed is ________, then the change in policy has exactly the same result on the economy as it does when we assume that households and firms have adaptive expectations
A) unannounced or not credible
B) unannounced or credible
C) announced or credible
D) announced or not credible
A
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The above figures show the market for HD televisions. If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
What is the difference between a recessionary gap and an inflationary gap?
What will be an ideal response?
Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?
A) the rightward shift of the aggregate demand curve that occurs during a recession B) the leftward shift of the short-run aggregate supply curve that occurs after a recession C) the rightward shift of the short-run aggregate supply curve that occurs after a recession D) the leftward shift of the aggregate demand curve that occurs after a recession
Primary credit is only a backup source of funds for health banks since
A) the primary credit rate is set above the federal funds rate. B) restrictions as to its use limit its benefits. C) the secondary credit rate pays 0.5% more. D) banks must seek funds from other sources prior to requesting a discount loan.