According to the textbook, the Fed's information is fairly imprecise in regards to all of these things except:
A. actual real GDP
B. potential GDP
C. size of output gaps
D. speed of the effects of its actions
Answer: A
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Which of the following is not included in personal consumption?
A. Purchases of new construction by consumers B. Payments for cable and Internet services to homes C. New furniture and appliances bought by homeowners D. Food purchased at supermarkets
If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at ? Please explain
What will be an ideal response?
An increase in interest rates might ________ saving because more can be earned in interest income
A) encourage B) discourage C) disallow D) invalidate
Economists use the mechanism of supply and demand to study:
a. inflation b. unemployment c. environmental protection d. both a and b e. all of these