Which of the following correctly describes what the Fed used as monetary targets in the past?
A) The Fed used M1 and M2 as targets after 1993.
B) The Fed focused on M1 as a target after deregulation of the financial markets.
C) The Fed increased its reliance on interest rate targets since the mid-1990s.
D) After 1980 and before the 1990s, the Fed focused on interest rate targets.
Answer: C
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If your real income falls during a period of inflation, then your nominal income might have
A) increased more rapidly than the price level. B) increased at the same rate as the price level. C) increased more slowly than the price level. D) decreased more slowly than the price level. E) More information is needed to determine if your nominal income increased more slowly, more rapidly, or at the same rate as the price level.
A supply shock that reduces total factor productivity directly affects which term in the production function Y = AF(K, N)?
A) A B) F C) K D) N
The division of labor refers to
A) the separation of blue-collared workers and white-collared workers. B) finding the best order of performing tasks. C) the separation of workers into union workers and non-union workers. D) the assignment of different workers to different tasks.
In the above figure, suppose the value of the European euro is P1 and U.S. demand for French wine declines. The effect on the franc can be shown by
A) an increase in the value of the euro to P2. B) the excess demand of euro equal to Q3 - Q1. C) the decrease in the value of the euro to P0. D) a shift in the demand for euros from D1 to D0, but no change in the value of the euro.