Soon after he became the chairman of the Federal Reserve System in 1979, Paul Volcker embarked on a course
a. of accommodative monetary policy.
b. of disinflation.
c. that was designed to reduce the unemployment rate.
d. that produced results that were clearly consistent with those predicted by rational-expectations theorists.
b
You might also like to view...
What is the world price of sugar without the tariff? 
A. $1,500/ton B. $2,000/ton C. $1,000/ton D. $500/ ton
If real GDP is greater than nominal GDP then the GDP price index
A) is greater than 100. B) is less than 100. C) is equal to 100. D) is either equal to or greater than 100. E) None of the above answers is correct because we need to choose a new base year.
The last trade bill to set overall tariff rates for the United States was the Smoot-Hawley Tariff of 1930
Indicate whether the statement is true or false
A firm invests in a new machine that costs $5,000 a year but which is expected to produce an increase in total revenue of $5,200 a year. The current real rate of interest is 7 percent. The firm should:
A. Undertake the investment because the expected rate of return of 10 percent is greater than the real rate of interest B. Undertake the investment because the expected rate of return of 8 percent is greater than the real rate of interest C. Not undertake the investment because the expected rate of return of 6 percent is less than the real rate of interest D. Not undertake the investment because the expected rate of return of 4 percent is less than the real rate of interest