One problem with using monetary policy to address "bubbles" in asset markets is that:
A. monetary policy is well-suited for addressing the problem of inappropriately high asset prices.
B. the Federal Reserve is not interested in stabilizing output.
C. doing so presupposes that the Federal Reserve is better than financial-market professionals at identifying bubbles.
D. reducing the real interest rate to deal with the bubble could lead to inflation.
Answer: C
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"To count as required reserves, the reserves must be on deposit at the bank's district Federal Reserve Bank." Is the previous statement correct or incorrect?
What will be an ideal response?
Refer to the table above. What is the marginal revenue of the monopolist when it sells 400 units of its product?
A) $2 B) -$2 C) $3 D) -$3
Logrolling may result in
A) creating limited incentives for policymakers to consider the immediate consequences of their proposed legislation. B) legislation that yields economy-wide benefits, the funding for which is borne primarily by a few of the smallest states. C) members of Congress selling their votes on proposed legislation to the highest bidder. D) a majority of Congress supporting legislation that benefits the economic interests of a few, while harming the economic interests of a much larger group.
The U.S. economy has never experienced deflation
a. True b. False Indicate whether the statement is true or false