The Fed does not try to reduce frictional unemployment because it
a. is easier to eliminate with fiscal policy
b. is not a serious social problem
c. has microeconomic solutions
d. signals a strong economy
e. rarely exceeds a 1 percent rate
B
You might also like to view...
In contrast to first-dollar insurance coverage, one concern about HMOs is that:
A. patients will receive more medical care than they need. B. the price of medical care will be too low. C. acute treatment will be overemphasized. D. patients will not receive adequate medical care.
An increase in income causes compensated demand curves to shift inward and regular demand curves to shift outward.
Answer the following statement true (T) or false (F)
The velocity of money is defined as
A) real GDP divided by the money supply. B) nominal GDP divided by the money supply. C) real GDP times the money supply. D) nominal GDP times the money supply.
The opportunity cost of holding excess reserves is equal to
A. the federal funds rate. B. the federal funds rate minus the discount rate. C. the discount rate. D. none of the above.