The Federal Reserve will tend to tighten monetary policy when
a. interest rates are rising too rapidly.
b. it thinks the unemployment rate is too high.
c. the growth rate of real GDP is quite sluggish.
d. it thinks inflation is too high today, or will become too high in the future.
d
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Which of the following is a normative statement?
a. A decrease in price leads to an increase in quantity consumed. b. Incomes grow more rapidly in high-tax states than low-tax states. c. People would be better off if government expenditures were higher. d. People will buy less butter at $1.50 per pound than they will at $1 per pound.
When people in a barter economy began to accept the good that had greater acceptability than all other goods, they weren't trying to create the institution of money. They were simply trying to __________
A) get along with their neighbors. B) become rich. C) make trading easier for themselves. D) pay lower prices. E) none of the above
Purchasing-power parity implies that the nominal exchange rate given as foreign currency per unit of U.S. currency must rise if the price level(s) in
a. foreign countries rise. b. the United States rises. c. all countries rise. d. all countries fall.
What is the long-run financial problem for Social Security?
What will be an ideal response?