In recent years, the Federal Reserve has:
A. paid closer attention to M1 than M2 in setting monetary targets.
B. relied more on changes in the discount rate than open-market operations in establishing
monetary policy.
C. has increased M2 at a fixed annual rate, regardless of the health of the economy.
D. taken an activist, pragmatic approach to monetary policy, paying close attention to interest
rates.
D. taken an activist, pragmatic approach to monetary policy, paying close attention to interest
rates.
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Increases in productivity due to changes in technological capacity could be best represented by:
a. Outward shift in the demand curve b. Outward shift in the supply curvec Outward shift in both the demand and supply curves d. Inward shift in the supply curve
Introducing a tariff on vitamin E would: a. reduce imports of vitamin E
b. increase U.S. consumption of domestically produced vitamin E. c. decrease total U.S. consumption of vitamin E. d. all of the above.
Equilibrium price must decrease when demand
a. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. b. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously. c. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. d. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
The most volatile category of GDP is _____ because those expenditures ______.
a. investment; are influenced by economic, political, and social variables b. disposable income; comprise the largest component of aggregate demand c. exports; capture the interaction of the U.S. economy with the rest of the world d. consumption; involve government spending on new goods and services produced