Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?

A. Discretionary policy
B. An eclectic approach
C.Fixed rules
D. Fiscal policy


C.Fixed rules

Economics

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A point to the left of the LM curve would represent a situation in which

A) money demand is greater than money supply. B) money supply is greater than money demand. C) money demand is greater than goods demand. D) money demand is less than goods demand.

Economics

Which of the following groups within the Federal Reserve System is primarily concerned with open market operations?

A) The Federal Open Market Committee B) The Federal Advisory Council C) The Federal Reserve Bank presidents D) The Board of Governors

Economics

If the nominal exchange rate between the dollar and the euro is $1 = €0.70, and the price of an 8.4 oz. can of Red Bull is $1.75 in the United States and €1.40 in Germany, the real exchange rate between the dollar and the euro is

A) 1.25 cans of Red Bull in Germany per can of Red Bull in the United States. B) 0.80 cans of Red Bull in the United States per can of Red Bull in Germany. C) 0.875 cans of Red Bull in Germany per can of Red Bull in the United States. D) 0.56 cans of Red Bull in Germany per can of Red Bull in the United States.

Economics

If the market elasticity of demand for potatoes is -0.3 in a perfectly competitive market, then the individual farmer's elasticity of demand

a. will also be -0.3. b. depends on how large a crop the farmer produces. c. will range between -0.3 and -1.0. d. will be infinite.

Economics