Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?
a. The Fed does not have the tools needed to alter the supply of money.
b. Monetary policy is unable to alter short-term interest rates.
c. The time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable.
d. It takes the Fed a long time to change the direction of monetary policy.
C
You might also like to view...
The information in the above table gives the 2000 base period market basket and prices used to construct the CPI for a small nation. The table also has 2010 prices. What is the value of the CPI for the base period 2000?
A) 140 B) 100 C) 30 D) 75 E) 133
According to the information, Japan's real GDP per person
A) is higher than Brazil's and therefore we can definitely conclude that economic well-being is higher in Japan. B) is $33,000. C) is lower than Brazil's, but its real GDP is higher which makes standard of living higher in Japan. D) cannot be expected to change much given the other factors affecting GDP growth including political freedom and life expectancy.
Which of the following statements about transfer payments is true?
a. Transfer payments are not included in total government expenditures. b. Transfer payments involve the international remittance of funds. c. Transfer payments refer to the transfer of money by the commercial banks to the people. d. Transfer payments are made by the government to taxpayers. e. Transfer payments are made when governments purchase goods and services.
Marginal social costs are the sum of marginal private costs and incidental costs.
Answer the following statement true (T) or false (F)