Changing the discount rate
a. provides a signal that the Fed wants to encourage an expansion or contraction of the money supply.
b. is usually done in large increments in order to have a rapid impact on business activity.
c. is primarily remedial rather than preventive.
d. is a function of the Federal Reserve Banks without any review by the Board of Governors.
a. provides a signal that the Fed wants to encourage an expansion or contraction of the money supply.
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Suppose that last week 100,000 people lost their jobs or quit. We can say that
A) the number of unemployed increased by less than 100,000 people because we should not count those who quit their jobs. B) the 100,000 people represent a stock known as the new unemployed. C) the number of unemployed increased by 100,000 people. D) the 100,000 people represent a flow known as job departures.
The Smoot-Hawley tariff triggered a trade war during the Great Depression of the 1930s
Indicate whether the statement is true or false
The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.
The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift
a. real GDP b. government tax revenue c. the money supply d. real interest rate e. the consumer price index