In terms of desirable features of a monetary policy instrument, explain why the size of the staff at the Fed is not a good policy instrument. Be sure to address which feature(s) it fits and which one(s) it doesn't.
What will be an ideal response?
The desirable features of a policy instrument are the instrument must be easily observable by everyone, it must be controllable and quickly changed, and finally it must be tightly linked to the policymakers' objectives. The size of the staff at the Fed certainly is observable by everyone and it is controllable and easily changed; where it fails as an effective instrument is that it is not tightly linked to the policymakers' objectives.
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Given the information in the table above. If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth?
What will be an ideal response?
In the face of an increase in oil prices, if the government's primary objective is to keep prices from falling, then policymakers should
a. reduce taxes. b. reduce the money supply. c. increase government spending. d. increase aggregate supply through regulation.
A . Explain how the existence of the Federal Savings and Loan Insurance Corporation (FSLIC) may unintentionally have increased the number of S&L failures in the 1980s and 1990s. b. What safeguards can help prevent this from happening?
A patent gives a single person or firm the exclusive right to sell some good or service for a specific period of time
a. True b. False Indicate whether the statement is true or false