The Fed's eclecticism reflects:
A. A combination of flexible rules and limited discretion.
B. Fixed rules that are set for monetary growth rates.
C. Discretionary policy but not rules.
D. The targeting of interest rates as the primary goal to be achieved by monetary policy.
A. A combination of flexible rules and limited discretion.
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Define what is meant to be risk-neutral
What will be an ideal response?
Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?
A) Aggregate demand is growing too fast to keep the economy at full employment. B) Potential GDP is forecasted to be lower than equilibrium GDP. C) Potential GDP is forecasted to be higher than equilibrium GDP. D) Aggregate demand is growing too slowly and the economy is in danger of producing GDP above full employment.
In a system of perfectly flexible exchange rates, an expansionary U.S. monetary policy will cause
a. a rise in the value of the dollar relative to foreign currencies. b. a fall in the value of the dollar relative to foreign currencies. c. no change in the value of the dollar relative to foreign currencies. d. a change in the value of the dollar relative to foreign currencies but the direction of the change is uncertain.
If a pre -merger Herfindahl-Hirschman Index (HHI) is less than ________, the merger is unlikely to be challenged.
A) 10,000 B) 1,500 C) 1,000 D) 2,200