Inflation targeting involves public disclosure of each of the following, except ________
A) policy makers' plans and objectives
B) explanation of discrepancies between target inflation and actual inflation
C) the federal government debt ceiling
D) projections of macroeconomic conditions
C
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Distinguish between a perfectly competitive firm and a monopolistically competitive firm on the basis of the long-run equilibrium price
What will be an ideal response?
The official policy of Lolita’s government is that while some consumption is good, a significant percentage of a person’s earnings should be saved. Why is this policy good for economic growth?
a. It prevents money from leaving the country. b. It reduces consumption of scarce natural resources. c. Saving is a form of human capital. d. Saving leads to more investment and capital formation.
For this question, assume that taxes are independent of income (i.e., the income tax rate is zero). Now suppose that fiscal policy makers wish to decrease equilibrium output by $500 billion. Further suppose that policy makers can choose one of the following two options: (1 ) change in government spending; or (2 ) change in taxes. Compare and explain the relative size of the changes in government
spending and taxes needed to obtain this desired change in output. What will be an ideal response?
A country is said to have an absolute advantage over another country in the production of a product if it uses more resources to produce that product than the other country does.
Answer the following statement true (T) or false (F)