Which of the following statements is true?
a. If the Fed chooses a money supply target, it runs the risk of interest rate variations that may create a new set of problems
b. The Fed can target the interest rate and money supply at the same time but only during periods of inflation.
c. If the Fed chooses a money supply target, it runs the risk of money supply variations that may create a new set of problems.
d. The Fed can target the interest rate and money supply at the same time but only during recessions.
e. If the Fed chooses an interest rate target, it reduces the risk of money supply variations.
A
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For a given production possibilities frontier, which points are attainable?
A. Points inside the frontier B. Points outside the frontier C. Points on or outside the frontier D. Points on the frontier only E. Points on or inside the frontier
In the above figure, the shift from point C to point B might be the result of
A) an increase in the price level. B) a decrease in the price level. C) a decrease in government expenditures. D) an increase in the quantity of money.
Which of the following are positive economic statements and which are normative economic statements?
a. An increase in the minimum wage causes unemployment. b. The government should raise the minimum wage above $7.25 per hour. c. The prolonged recession has caused the unemployment rate to reach a 30-year high. d. Interest rates need to be lower for the economy to emerge from the recession. e. Inflation has decreased since the onset of the recession. f. Once the recession has ended, interest rates should increase to assure that inflation does not go up.
What is market supply? How is the market supply curve for a good obtained?