The Fed's use of the ________ as an operating target in the 1970s resulted in ________ monetary policy
A) federal funds rate; countercyclical
B) federal funds rate; procyclical
C) M1 money supply; countercyclical
D) M1 money supply; procyclical
B
You might also like to view...
As the result of a decrease in capital, the demand for labor would ________, the supply of labor would ________, and the real wage would ________
A) decrease; decrease; decrease B) decrease; remain the same; increase C) decrease; remain the same; decrease D) decrease; increase; remain the same
In a two-period model, holding everything else constant, an increase in government spending
A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus.
Refer to the above table. The price of Y decreases from $18 to $15. What is the cross price elasticity of demand between Y and X?
A) -0.73 B) -1.0 C) +1.38 D) +1.83
Which of the following is an example of the precautionary motive for saving?
A. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. B. Every month, Chris puts $400 into his saving account so that he can buy a new car in a few years. C. Pat puts $400 per month in his 401(k) retirement account. D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when the parents die.