Refer to the given data. The domestic opportunity cost of:
Answer the question on the basis of the following production possibilities data for two countries, Alpha and Beta, which have populations of equal size.
A. producing a ton of chips in Alpha is 1/5 of a ton of fish.
B. producing a ton of chips in Beta is 6 tons of fish.
C. catching a ton of fish in Alpha is 5 tons of chips.
D. catching a ton of fish in Beta is 6 tons of chips.
B. producing a ton of chips in Beta is 6 tons of fish.
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Suppose player 1 potentially moves twice in a sequential game, each time choosing from one of two possible actions -- "Left" or "Right". His first move is at the beginning of the game. He gets to move a second time if he moved "Left" the first time and after observing one of two possible actions by player 2 ("Up" or "Down"). But if he moves "Right" in the first stage, he gets no further moves and the game ends after player 2 chooses one of two actions ("Up" or "Down"). Draw the game tree and list all possible strategies for players 1 and 2.
What will be an ideal response?
The Fed greatly increased the monetary base in 2009 and 2010 by purchasing assets in an attempt to boost the economy, while making it known that they intended on selling these assets once the economy showed signs of stability, and at the same time
keep a watchful eye on possible inflation. The Fed's inflation expectations would most likely be considered as ________, and the Fed was able to increase the monetary base without causing expected inflation to increase because their intentions and statements were generally considered ________. A) adaptive; not credible B) adaptive; credible C) rational; not credible D) rational; credible
Which of the following was a lesson from the 2007-2009 financial crisis?
a. The financial system needed more leverage in order to operate. b. The job of stabilizing the economy should be assigned exclusively to monetary policy. c. Monetary policy is finished once the Fed reduces the federal funds rate to zero. d. The business cycle still exists.
Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?
a. The Fed does not have the tools needed to alter the supply of money. b. Monetary policy is unable to alter short-term interest rates. c. The time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable. d. It takes the Fed a long time to change the direction of monetary policy.