Which of the following tools does the Fed use to pursue its objectives?
A) It influences short-run and long-run interest rates.
B) It provides loans to new firms and businesses at extremely low rates of interest.
C) It determines the efficient level of government spending.
D) It influences market prices through price ceilings and price floors.
A
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To say individuals seek an "economically efficient" course of action is another way of saying they
A) waste precious resources. B) are not concerned about the wellbeing of anybody else. C) economize. D) measure everything according to the bottom line: money.
Analysts have attempted to model the impact of monetary policy on net worth by emphasizing
A) the impact of lower interest rates on business spending on fixed investment. B) the impact of lower interest rates on household spending on housing and durable goods. C) the liquidity of balance sheet positions as a determinant of business and household spending. D) the greater variability of business spending compared to household spending.
Which of the following statements best describes the neoclassical argument about unemployment and inflation?
a. Neoclassical economists argue that any short-term gains in lower unemployment will eventually vanish and the result of active policy will only be inflation. b. Neoclassical economists argue that any long-term gains in lower unemployment will eventually vanish and the result of active policy will only be inflation. c. Neoclassical economists argue that any short-term gains in lower unemployment will eventually vanish and the result of active policy will only be deflation. d. Neoclassical economists argue that any long-term gains in lower unemployment will eventually vanish and the result of active policy will only be deflation.
If goods are not rationed according to price, if follows that
A) they won't get rationed at all. B) some non-price rationing device will be used to ration the goods. C) first-come-first-served will necessarily be the rationing device used in the market. D) there will be surpluses in the market. E) none of the above