The Federal Open Market Committee
a. must submit its policies to the President and Senate for approval.
b. operates with almost complete discretion over monetary policy.
c. is required to target short-term interest rates in a mechanical way based on an equation that takes into account both price stability and output fluctuations.
d. is required to set and publicize targets for money supply growth.
b
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If the economy starts in long-run equilibrium, a permanent fiscal expansion will cause
A) an increase in exchange rate, E. B) a decrease in exchange rate, E. C) an increase in output, Y. D) a decrease in output, Y. E) shifting of the AA curve up and to the right.
Describe the particular policy mix that accounts for the favorable economic conditions of the late 1990s. Be sure to specify the fiscal and monetary policies pursued during this period
When the government of India lowered tariff barriers and removed the need for approvals for routine industrial expansion, what source of growth did this reform change directly?
A. Growth-compatible institutions B. Human capital C. Technology D. Physical capital
Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in supply, the equilibrium quantity of drugs:
A. will increase. B. will decrease. C. will not change. D. may or may not change.