The period of time between when monetary policy is enacted and when it actually begins to affect the economy is called the
A) recognition lag.
B) implementation lag.
C) impact lag.
D) liquidity lag.
C
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Which statement is true?
A. The Federal Reserve buys nearly all its United States government securities directly from the Treasury. B. Open market operations are the buying and selling of United States government securities in the open market by the Federal Reserve. C. The least important policy tool used by the Federal Reserve to control the money supply is open market operations. D. None of the choices/statements are true.
The free rider problem suggests that a producer will tend to: i. produce more than the optimal quantity of a public good. ii. produce less than the optimal quantity of a public good. iii. produce the optimal quantity of a public good if it is funded out of tax revenue
a. (i) only b. (ii) only c. (i) and (iii) only d. (ii) and (iii) only
Capital flight shifts the NCO curve to the left
a. True b. False Indicate whether the statement is true or false
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then
a. employment and production rise. b. employment rises and production falls. c. employment falls and production rises. d. employment and production fall.