How does a "rules-based" approach to monetary policy differ from "discretionary intervention"?
What will be an ideal response?
A rules-based approach does not leave the Fed much room to decide what to do with the money supply. One common example of a rules-based approach would be inflation targeting, in which the Federal Reserve announces an inflation target and then makes every effort to hit that target. Those who advocate discretionary intervention believe that the Fed's policy should be flexible, changing to meet the needs of the current economy.
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XM Satellite Radio and Sirius Satellite, who are the only major satellite radio companies serving the United States, were given permission in March of 2008 by the Justice Department to merge
Can you think of any reasons why there was no real worry about monopoly power?
Studies show that improved education of women in developing countries leads to
(a) lower infant mortality. (b) better designed, market based development policies. (c) lower international dependence. (d) all of the above.
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato in Country A is:
A. 100 bananas. B. 20 bananas. C. 5 bananas. D. 4 bananas.
Tariffs are different from quotas because they
a. increase government revenue. b. increase profits. c. increase the quantity traded. d. place all the burden on foreigners.