The Fed's communication:
A. is irrelevant, all that matters is the actions that it takes.
B. is often used as a distraction to hide its true agenda.
C. is itself an important tool of monetary policy.
D. is the single most important tool of fiscal policy.
Ans: C. is itself an important tool of monetary policy.
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For a monopsony buyer of an input, the marginal expenditure curve
A) lies above the average expenditure curve. B) lies below the average expenditure curve. C) is identical to the average expenditure curve. D) lies below the input demand curve.
Helga owns Viking, Inc, started with her $100,000 inheritance. Helga's accountant informs her that her firm earned a profit of $100,000 last year, and that if she chooses to invest the money she can expect a 10% return. If Helga did not run Viking, she would not work. What were Helga's economic profits last year?
a. Zero b. $100,000 c. $90,000 d. $95,000
Policies that reduce the time it takes unemployed workers to find new jobs
a. can reduce both frictional unemployment and the natural rate of unemployment. b. can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. c. cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. d. cannot reduce either frictional unemployment or the natural rate of unemployment.
A linear demand function exhibits:
A. more elastic demand as output increases. B. constant demand elasticity. C. less elastic demand as output increases. D. insufficient information to determine.