The proponents of rational expectations and monetarism think that the Federal Reserve should adopt
A) an inflation target.
B) a monetary aggregate target.
C) a constant monetary growth rule.
D) an interest rate target.
Answer: C
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Critically evaluate the following statement. "It's better to make people wait in line than it is to make them have to pay more for the product."
What will be an ideal response?
Adam Smith believed that if people were free to pursue their own interests,
a. public interest would be served quite well. b. less would be produced than if altruism were the guiding principle. c. they would generally apply their talents to unproductive activities that would generate little value to society. d. they would have little incentive to undertake productive activities.
Which of the following is not a result of a higher federal budget deficit?
A) a higher real interest rate B) a depreciation of the currency C) a fall in exports D) a fall in the price of foreign inputs
In 2010, President Obama signed into law that made the Federal Reserve as the nation's
A. fiscal policy making unit. B. largest private bank. C. regulator of systemic financial risk. D. federal income tax collector.