The choice of how and where to hold idle funds is
A. An executive Fed decision.
B. A portfolio decision.
C. A Fed funds decision.
D. A discount decision.
Answer: B
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If the Federal Reserve attempts to continue reducing unemployment by manipulating monetary policy, which of the following would you expect to see?
A) The rate of inflation will fall as the Fed tries to reduce the unemployment rate. B) The Fed's policies will be deflationary. C) The Fed's policies will be inflationary. D) The Fed will reduce the natural rate of unemployment.
Reciprocity between two countries implies that
a. neither will trade with the other b. trade flows freely across the two countries' borders c. trade can only be beneficial to one of the countries d. each agree not to trade with any other countries e. you do unto others as they do unto you
Free-floating exchange rates are determined by the
A. policies of the domestic government. B. policies of foreign governments. C. forces of demand and supply in the foreign exchange market. D. forces of demand and supply in the domestic money market.
The phrase "too much money chasing too few goods" best describes:
A. the GDP gap. B. demand-pull inflation. C. the inflation premium. D. cost-push inflation.