Many spouses complain that their partners put less effort into their relationship after getting married. This is an example of
a. Moral hazard
b. Adverse selection
c. Terrible husbands
d. None of the above
a
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Inflation targeting requires that the central bank
A) publicize its targeted inflation rate. B) avoid changing the amount of the monetary base. C) use a short-term interest rate as its policy instrument. D) set a fixed price real assets. E) adopt a k-percent rule for the inflation rate. The figure above shows the market for reserves.
The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Unemployment will equal
A) 0 hours. B) 10 million hours per year. C) 20 million hours per year. D) 30 million hours per year.
Although current U.S. tariffs are quite low on average, tariffs remain high for some products
Indicate whether the statement is true or false
At the beginning of the 1980s under Chairman Paul Volcker, the Fed
a. stressed control of interest rates over control of the money supply b. did not seem to favor either control of the money supply or of interest rates c. changed the emphasis between controlling the money supply and controlling the interest rate depending on the state of international trade d. stressed control of the money supply over control of the interest rate e. controlled whichever target that seemed to be important at the time