Supporters of Federal Reserve independence contend that independence from the rest of the federal government leads to lower
A) inflation rates.
B) interest rates.
C) reserve requirements.
D) rates of unemployment.
A
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In the Keynesian framework, which of the following event might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers.
a. A large increase the price of the homes that people own. b. Rapid growth in the economy of a major trading partner. c. The development of a major new technology offers profitable opportunities for business. d. The interest rate rises. e. The good imported from a major trading partner become much less expensive.
Net foreign investment is equal to
A) foreign direct investment. B) the balance of trade. C) capital inflows minus capital outflows. D) net foreign portfolio investment plus net foreign direct investment.
Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
On a production possibilities frontier, the opportunity cost of one more unit of a commodity per time period is measured by the
a. monetary price of the commodity b. amount of the other commodity that must be sacrificed c. amount of unemployed resources that must be used d. amount of satisfaction it gives consumers e. amount of tax paid to government for production, sale, and use of the commodity