The two primary objectives of the Fed are:
A) low and predictable levels of inflation, and interest rates above 10%.
B) zero inflation, and zero unemployment.
C) low and predictable levels of inflation, and zero unemployment.
D) low and predictable levels of inflation, and maximum levels of employment.
Answer: D) low and predictable levels of inflation, and maximum levels of employment.
You might also like to view...
Because of unseasonably cold weather, orange crops were destroyed in Florida. This statement indicates that
A. the demand for apple juice will decrease. B. the amount of orange juice will decrease. C. demand for oranges will necessarily rise. D. equilibrium quantity of oranges will rise.
According to classical economists, unemployment exists because
A) it takes time and effort for someone to find a job. B) government activity causes unemployment. C) the minimum wage generates unemployment. D) workers are all identical.
In a competitive market, an efficient allocation of resources is characterized by:
a. a price greater than the marginal cost of production. b. the possibility of further mutually beneficial transactions. c. the largest possible sum of consumer and producer surplus. d. a value of consumer surplus equal to that of producer surplus.
Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of
a. a controlled experiment that lead to the formulation of a scientific theory. b. being in the right place at the right time. c. an idea whose time had come. d. the interplay between observation and theory in science.