The information lag facing the Fed is
A) the difficulty of becoming informed quickly of changes in public opinion about which policy goal is most important.
B) the delay in receiving accurate information about the state of the economy.
C) the delay in Congress and the President communicating their policy goals for the Fed to act on.
D) the time required for monetary policy changes to affect output, employment, and prices.
B
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A rapid withdrawal of foreign investments and loans from a nation is
A) an international financial crisis. B) foreign direct capital. C) portfolio investment. D) dead capital.
In an economy with ________, there are more prices than in an economy with ________
A) barter; money B) fiat money; commodity money C) fiat money; barter D) money; barter
Data in the following table refer to the purchase of a resource by a pure monopsonist. Let the resource be labor time L, measured in hundreds of hours per day
Units of Labor Marginal Average Marginal Revenue Input Expenditure Expenditure Product L ME AE MRP 1 10 10 16 2 12 11 15 3 14 12 14 4 16 13 13 5 18 14 12 6 20 15 11 7 22 16 10 8 24 17 9 a. Determine the profit maximizing purchase rate of labor for the monopsonist. b. If this market were not monopsonistic but competitive, what would be the purchase rate of labor time? c. Determine the equilibrium wage rate in both the monopsonistic and competitive markets?
Discuss the current debate on the optimal inflation target
What will be an ideal response?