The Fed shifted from emphasizing the importance of a target interest rate to emphasizing the importance of a target money supply in order to
a. combat inflation in the economy
b. combat unemployment in the economy
c. spur economic growth in the economy
d. create a better balance of trade for the economy
e. combat deflation in the economy
A
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A country reports that its inflation rate and unemployment rate have both increased. These changes could be the result of
A) a movement downward along the short-run Phillips curve. B) a movement upward along the short-run Phillips curve. C) a downward shift of the short-run Phillips curve. D) an upward shift of the short-run Phillips curve. E) a leftward shift of the long-run Phillips curve.
Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing the portion of consumer surplus transferred to producers as a result of the price floor?
A) A + B B) B C) A D) B + C
A decrease in U.S. federal government budget deficits that lowers U.S. interest rates relative to the rest of the world should
A) decrease net exports. B) increase foreign portfolio investment. C) lead to a current account surplus. D) lower the trade balance. E) cause the dollar to appreciate.
Your roommate tells you she's going to join the gym next week. A week and a half goes by and you ask her how the gym is going, and she tells you she's going to wait until the following week. Your roommate's preferences are:
A. better today than tomorrow. B. time inconsistent. C. mistakes. D. considered bad choices.