Which of the following statements is (are) correct? Regardless of whether the LM curve is vertical or upward sloping,
a. a money stock target is superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.
b. an interest rate target is always superior to a money stock target when the uncertainty facing the policymaker concerns the IS schedule.
c. both a money stock target or interest rate target provide the same results when the uncertainty facing the policymaker concerns the IS schedule.
d. a money stock target is never superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.
A
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The excess of total credits over total debits in the current and private capital accounts is called the
A) BOP deficit. B) BOP surplus. C) official settlements account surplus. D) official settlements account deficit.
Suppose you purchase a one-year bond that has a $450 coupon and a face value of $5,000, and immediately after you purchase the bond, new bonds are issued that are otherwise identical, except they have coupons of $375
If you sell your bond, you will A) suffer a loss of $5.76. B) suffer a loss of $412.84. C) receive a gain of $69.77. D) receive a gain of $418.60.
Which of the following will not shift the demand curve for grapefruit?
a. an announcement that eating a grapefruit before every meal will induce weight loss b. a new technology that cuts the labor time needed to harvest grapefruit c. an announcement that eating grapefruit causes skin problems d. a fall in the price of oranges e. an announcement that the price of grapefruit will increase next week
If you knew that the vertical intercept for a straight line was 150 and that the slope of the line was 4, then the dependent variable would be 250 when the value of the independent variable is:
A. 15 B. 20 C. 25 D. 30