When the Fed announces a target for the federal funds rate, it essentially accommodates the day-to-day fluctuations in money demand by adjusting the money supply accordingly
a. True
b. False
Indicate whether the statement is true or false
True
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
The marginal product of the variable input
A) is always positive. B) typically falls then rises. C) is equal to the total product divided by the total amount of the variable input employed. D) None of the above
What are the major rationales for consumer protection in nonmonopolistic industries?
What will be an ideal response?
In a perfectly competitive market, when the price is greater than the minimum average total cost for most firms, some will:
A. exit until the price increases to equal minimum ATC. B. enter until the price increases to equal minimum ATC. C. exit until the price drops to equal minimum ATC. D. enter until the price drops to equal minimum ATC.