Which of the following statements is an example of the Fed's conditional commitment policy?
A) "In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period."
B) "The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time."
C) "Policy accommodation can be removed at a pace that is likely to be measured."
D) "The exceptionally low range for the federal funds rate will be appropriate at least as long as the
unemployment rate remains above 6-1/2 percent, and inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal."
D
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In 2014, net exports in the United States were
A) zero. B) positive. C) negative. D) greater than personal consumption expenditures.
Evidence suggests that education raises the earnings of the workforce mainly by
a. increasing the marginal productivity of labor. b. keeping young people out of the labor force, thereby reducing the supply of labor. c. teaching workers how to demand more pay. d. teaching people to read and write, although education beyond this point does not seem to increase worker productivity.
"Creating a free market for carbon-dioxide emission permits would only encourage firms to pollute more." Do you agree or disagree? Why?
What will be an ideal response?
To enhance their prestige, some country clubs like to point to the fact that they have a waiting list for new members. Even at clubs with high initiation fees, it is common that prospective members have to wait three or more years before there is room
for them on the membership rolls. How do these country clubs set the price of membership to ensure that they have a waiting list? A) Set the membership price above the market clearing price. B) Set the membership price below the market clearing price. C) Set the price so that the quantity supplied of memberships exceeds the quantity demanded. D) Set the price at a level that will generate a surplus of memberships.