Until the 1990s, how was monetary policy typically conducted in advanced countries?
What will be an ideal response?
1 ) The central bank chose a target rate for nominal money growth corresponding to the inflation rate it wanted to achieve in the medium run. 2 ) In the short run, the central bank allowed for deviations of nominal money growth from the target. 3 ) To communicate to the public both what it wanted to achieve in the medium run and what it intended to do in the short run, the central bank announced a range for the rate of nominal money growth it intended to achieve.
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An increase in subway fares in New York City will boost your expenditures on subway rides if
A) the supply of subway rides is elastic. B) the supply of subway rides is inelastic. C) your demand for subway rides is elastic. D) your demand for subway rides is inelastic.
A soil bank program is designed to
a. increase the supply of farm goods b. increase the availability of farm land c. decrease the supply of farm goods d. increase the demand for farm goods e. decrease the price of farm goods
The effect of budget deficits on interest rates
a. increases private investment, so eventually the capital stock rises. b. increases private investment, so eventually the capital stock falls. c. decreases private investment, so eventually the capital stock rises. d. decreases private investment, so eventually the capital stock falls.
Suppose when the price of a can of tuna is $1.30, the quantity demanded is 9, and when the price is $1.50, the quantity demanded is 7. Using the mid-point method, the price elasticity of demand is:
A. 29 percent B. 0.57 C. -0.57 D. -1.75