Between September 2007 and December 2008, the FOMC reduced the target federal funds rate 5.25 percentage points toward zero. A reason for this was that the FOMC:
A. feared over stimulating the economy.
B. was feeling political pressure to act.
C. was acting preemptively.
D. was taking a wait and see approach to previous cuts.
Answer: C
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
When plotted against the total output, what does the total fixed cost curve look like?
What will be an ideal response?
Taxes on emissions have come to be called
A) the "command and control" approach. B) "licenses to pollute." C) spillover costs. D) the fallacy of false alternatives.
Refer to Table 19-1. Fill in the missing values in the above table. Assume the Big Mac is selling for $4.79 in the United States. Explain whether the U.S
dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate.