Policy directives issued by the Fed to moderate swings in the business cycle are
a. countercyclical fiscal policy
b. channeled through the Treasury Department
c. countercyclical monetary policy
d. first approved by the appropriations committees of the U.S. House of Representatives and the Senate
e. federal funds activity
C
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Including discouraged workers in the calculation of the unemployment rate would
A) not change the reported rate. B) increase the reported rate. C) change the reported rate, but in an unpredictable manner. D) lower the reported rate.
In a Nash equilibrium, all players select non-dominant strategies
Indicate whether the statement is true or false
Suppose that there is a positive aggregate demand shock and the central bank commits to an inflation rate target. But if the commitment is not credible, then
A) the public's expected inflation will remain unchanged. B) the short-run aggregate supply curve will rise. C) over time inflation will fall back down to the inflation target. D) all of the above. E) both A and B.
Classical economists who allow for shocks other than productivity shocks to affect the economy use ________ models rather than RBC models
A) Keynesian B) monetarist C) nonlinear D) DSGE