With its goal of price stability, the Fed attempts to
A) keep the inflation rate from falling below 5% and rising above 10%.
B) maintain an inflation rate of zero.
C) achieve a low, stable inflation rate.
D) counteract periods of inflation with periods of deflation.
C
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The underground economy can be described as
A) production of intermediate goods and services. B) economic production that includes mining. C) production of infrastructure that spurs growth in the rest of the economy. D) economic activity that is hidden from the government to avoid taxes or because the activity is illegal.
Refer to the above table. Assuming constant opportunity costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock
A) U.S. residents would be willing to export cuckoo clocks, but Swiss residents would not gain from exporting movies at this rate of exchange. B) Swiss residents would be willing to export movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange. C) U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange. D) U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.
In the circular flow diagram everyone's expenditure is someone else's receipt.
Answer the following statement true (T) or false (F)
When Turkey tried to preserve its fixed exchange rate in the early 2000s, it was unable to do so and its currency depreciated. Which policy would have been most likely to help Turkey preserve the value of its exchange rate?
A. Drop in central bank lending rates B. Tax cut C. Drop in the money supply D. Spending hike