In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it
A) had no interest in targeting a monetary aggregate, as evidenced by its unwillingness to target a reserve aggregate.
B) was still very concerned with achieving interest rate stability.
C) was committed to targeting free reserves.
D) was committed to the real bills doctrine.
B
You might also like to view...
Increase in business taxes will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Which of the following is an advantage of using a credit card? a. Credit cards help account holders tap directly into their checking account. b. Credit cards help account holders get a loan from the card issuer
c. Credit cards require a PIN number, and are therefore safe. d. Credit card holders can earn a fixed interest on their accounts. e. Credit cards help eliminate the use of money.
Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) A nation that realizes a 3 percent increase in its output per person is experiencing modern economic growth. 2) Output per person has grown steadily since the beginning of the Roman Empire. 3) China's GDP per person in 2011 was about one-third of U.S. GDP per person in the same year. 4) Economists refer to purchases of stocks and bonds as "investment."