When the financial crisis started in August 2007, inflation was rising and the Fed began an aggressive easing lowering of the federal funds rate, which indicated that
A) the Fed pursued an autonomous monetary policy tightening.
B) the Fed pursued an autonomous monetary policy easing.
C) the Fed had an automatic negative response to inflation based on the Taylor rule.
D) the Fed had an automatic positive response to inflation based on the Taylor rule.
B
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Russia, Iran and Qatar made the first serious moves in October 2008 toward forming an OPEC-style cartel on natural gas. What is the goal of a cartel?
A) restrict output B) raise prices C) increase sales D) increase profits
The presence of the automatic stabilizers means an increase in the budget deficit will be automatically experienced during an economic expansion whereas a budget surplus will be automatically experienced during a recession
a. True b. False Indicate whether the statement is true or false
A depreciation of the dollar will
A. discourage foreigners from buying U.S. goods. B. encourage Americans to invest in foreign assets. C. increase the amounts of U.S. dollars demanded by foreigners. D. throw the U.S. economy into a recession.
Production efficiency implies that
A) joint profits are maximized. B) joint profits are minimized. C) joint profits are zero. D) joint profits can be increased.