The Fed's monetary target shifted in the late 1980s and 1990s when the
a. Fed's focus shifted from the interest rate to the money supply to counter persistent high inflation
b. Fed used its discretion to make the money supply conform to a targeted interest rate
c. Fed realized that higher interest rates could not stimulate investment, aggregate demand, and real GDP
d. Fed became less concerned about inflation and worried more about recession
e. Fed abandoned its no-new-taxes pledge
D
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When an economy faces diminishing returns,
A) the slope of the per-worker production function becomes flatter as capital per hour worked increases. B) the per-worker production function shifts to the left. C) the per-worker production function shifts to the right. D) the slope of the per-worker production function becomes steeper as capital per hour worked increases.
According to a model of intergenerational equity, if future generations are expected to be better off than the current generation, transfers should
A. go from the richer generation to the poorer generation. B. not be done at all. C. go from the poorer generation to the richer generation. D. be weighted by increases in the inflation rate.
To an economist, the cost of a college education
a. includes the income that the student could have earned during the time spent in college. b. can be measured solely by the dollar cost of tuition, books, and other fees. c. includes only the cost of schooling, not the cost of housing and food. d. excludes financial aid in computation of the cost of schooling. e. All of the above are correct.
Is education the swiftest method to eliminate poverty. Explain