The following quotation comes from remarks given by Ben Bernanke, chairman of the Federal Reserve: “The substantial ongoing slack in the labor market and the relatively slow pace of improvement remain important reasons that the Committee continues to maintain a highly accommodative monetary policy.” Which part of the dual mandate does the quote refer to?
What will be an ideal response?
Answer: The Federal Reserve's twin goals of price stability and full employment. The quote is focusing on full employment.
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Suppose the price of an ounce of silver is 100 nuevos soles in Peru and $400 in the United States. This implies:
a. the Peruvian nuevo sol is worth four times the value of a U.S. dollar. b. the Peruvian nuevo sol is worth one-fourth the value of a U.S. dollar. c. Peru's economy must be four times larger than the U.S. economy. d. the U.S. economy must be four times larger than that of Peru. e. the U.S. dollar is worth four times the value of a Peruvian nuevo sol.
A law that restricts plant closings will
A. provide useful market signals to all parties in the industry. B. prevent resources from flowing to their highest-valued uses. C. make the economy more efficient by slowing down the movement of resources to a more optimal rate. D. make the economy more efficient by reducing poor decisions on the part of entrepreneurs.
If K = 3000, n = 0.02, and d = 0.07, then investment of ________ will hold (K/N) constant
A) 105 B) 150 C) 270 D) 420
The disruption caused by international trade is
a. fundamentally different from some of the other disruptions caused by the other workings of a market economy. b. not fundamentally different from all the other disruptions caused by the other workings of a market economy. c. fundamentally different from all the other disruptions caused by the other workings of a market economy. d. not fundamentally different from some of the other disruptions caused by the other workings of a market economy.