What is meant by the term "inflation targeting"? What is the Fed's objective regarding inflation?
What will be an ideal response?
Inflation targeting refers to the policy of attempting to obtain a specific low level of inflation over the long run. The Fed aims to keep inflation low and predictable.
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According to the quantity theory of money, inflation causes an increase in the money supply
Indicate whether the statement is true or false
The U.S. federal government obtains most of its revenues through taxes from three sources. Which of the following is not one of those three main sources of federal revenue?
A) corporate income taxes B) social insurance taxes C) sales and excise taxes D) individual income taxes
For the world as a whole, economic freedom increased since 1994 as the countries opened up in the world market and the governments slashed tax rates
a. True b. False Indicate whether the statement is true or false
In Figure 5.7, assuming perfect competition, which price(s) is associated with a loss? 
A. MR1 B. MR2 C. MR3 D. MR1 and MR2