The Federal Reserve conducts monetary policy
Indicate whether the statement is true or false
True
You might also like to view...
The supply of a good will tend to be highly elastic if
A) additional resources to produce the good can be obtained quickly and with no increase in cost. B) its price rises quickly and sharply when the demand increases. C) the good has few close substitutes. D) the good is generally classified as a luxury. E) the good is generally classified as a necessity.
Menu costs refer to:
A. the money, time, and opportunity used to change prices to keep pace with inflation. B. the time, money, and effort one has to spend managing cash in the face of inflation. C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed. D. labor costs associated with inflation.
Moral hazard is:
A. when buyers and sellers with the same information about the quality of a good or the riskiness of a situation agree to a somewhat shady deal. B. the tendency for people to behave in a riskier way or provide less effort when they do not face the full consequences of their actions. C. when people engage in behavior that is considered highly desirable by the person who bears the cost of the behavior. D. when buyers and sellers have different information about the quality of a good or the riskiness of a situation.
Fundamental forecasting uses trends in economic variables to predict future rates.
a. true b. false