The Fed greatly increased the monetary base in 2009 and 2010 by purchasing assets in an attempt to boost the economy, while making it known that they intended on selling these assets once the economy showed signs of stability, and at the same time
keep a watchful eye on possible inflation. The Fed's inflation expectations would most likely be considered as ________, and the Fed was able to increase the monetary base without causing expected inflation to increase because their intentions and statements were generally considered ________. A) adaptive; not credible
B) adaptive; credible
C) rational; not credible
D) rational; credible
D
You might also like to view...
If the market for Twinkies is in equilibrium, then
A) Twinkies must be a normal good. B) producers would like to sell more at the current price. C) consumers would like to buy more at the current price. D) the quantity supplied equals the quantity demanded.
________ can counteract a currency depreciation
A) Autonomous monetary policy tightening B) Purchase of international reserves C) Autonomous monetary policy easing D) Capital controls
Which of the following is a shortcoming of GDP?
a. GDP excludes changes in inventories. b. GDP includes an estimate of illegal transactions. c. GDP excludes nonmarket transactions. d. GDP excludes business investment spending.
On the basis of the above demand and supply data, the demand for this product is elastic in the $8-$7 price range
Indicate whether the statement is true or false.