Since the Fed faces uncertainty regarding effects of its policies, the Fed usually proceeds:
A. forcefully to ensure a desired effect.
B. only after a recession is statistically proven to exist.
C. only after fiscal policy polices have been enacted.
D. cautiously with only small changes in the interest rate.
Answer: D
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What will be an ideal response?
Even economists have no single, precise definition of money because
A) money supply statistics are a state secret. B) the Federal Reserve does not employ or report different measures of the money supply. C) the "moneyness" or liquidity of an asset is a matter of degree. D) economists find disagreement interesting and refuse to agree for ideological reasons.
Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect
a. income b. endowment c. substitution d. price e. scale
Tax loopholes increase the progressivity of the federal income tax
a. True b. False Indicate whether the statement is true or false