Why doesn't the Fed have both a money supply target and an interest rate target?
A) The Fed does not control money demand.
B) Short-term interest rates do not respond to changes in the money supply, which the Fed can control.
C) The Fed cannot offset the impact of changes in cash management by the public or changes in lending policies of commercial banks on the money supply.
D) Only the level of interest rates matters when we consider rates of growth in real GDP, employment, and rates of price inflation.
A
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During periods of recession unemployment:
A. is more common. B. is less common. C. is uncorrelated to periods of recession. D. rates are the same for all groups of the working population.
Identify and define the term used to describe how consumer demand affects the demand curve for labor, and provide an example.
What will be an ideal response?
Which of the following variables would not influence the ex-dividend price of a share of stock at time t?
A) i1et+1 B) i1t C) $Det+1 D) none of the above
Given the fact that "too big to fail" could translate into "too big to jail", many economists are calling for a return to the separation of high-risk from the low-risk activities in the financial sector. This separation is embodied in the Wall Street Reform and Consumer Protection Act of 2010 in the so-called:
A. Greenspan Policy B. Volker Rule C. Bernanke Policy D. Obama Rule