If the public is not sure about the central bank's motives, then
A) initial releases of data may be less accurate than later data releases.
B) the predominant source of shocks to the economy must be shocks to the LM curve.
C) central bankers should try to stabilize the inflation rate.
D) modern macroeconomic modeling techniques will fail.
C
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Growers expect that the price of a bushel of wheat will increase in one month. This belief results in
A) an increase in current supply of wheat. B) a decrease in current supply of wheat. C) a decrease in future supply of wheat. D) no change in current or future supply of wheat.
With respect to labor supply, the income effect leads a person to want to work more in order to raise his or her income
Indicate whether the statement is true or false
The majority of members of the Federal Open Market Committee are
A) Federal Reserve Bank presidents. B) members of the Federal Advisory Council. C) presidents of member banks. D) the seven members of the Board of Governors.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.