Suppose the United States decides to go back on the gold standard. This should
A) improve the Federal Reserve's ability to target inflation.
B) decrease the Federal Reserve's ability to pursue active monetary policy.
C) increase the effectiveness of expansionary monetary policy.
D) increase the effectiveness of contractionary monetary policy.
B
You might also like to view...
Which of the following statements is true of minimum wages?
A) Minimum wages are sometimes referred to as wage ceilings. B) No state in the U.S. economy has ever enforced a minimum wage. C) Minimum wages are normally set above the labor market clearing wage rate. D) Minimum wages benefit firms and producers.
Refer to the table above. If there is no statistical discrepancy, the sum of all three balance of payments accounts equals
A) -$20 billion. B) +$220 billion. C) +$20 billion. D) zero E) +$200 billion.
Which of the following is NOT part of solving a game?
A) Write down all possible combinations of strategies. B) Write down all possible payoffs and eliminate dominated strategies. C) Solve for any Nash Equilibrium. D) None of the above.
Suppose that at the start of this year you got a salary increase of 10 percent from your employer. The prices of the goods and services you typically purchase increase 10 percent during the year. At the end of the year you have experienced on balance:
A. Higher real income and higher nominal income. B. Higher real income but lower nominal income. C. No change in nominal income. D. No change in real income.