Throughout the 1980s, the Federal Reserve
a. primarily targeted M1.
b. primarily targeted M2.
c. returned to targeting the federal funds rate.
d. began targeting inflation.
B
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
A rise in the exchange rate leads to a decrease in the quantity of dollars demanded
Indicate whether the statement is true or false
Refer to Figure 23-1. If the economy is at point J, what will happen?
A) Inventories have fallen below their desired level, and firms increase production. B) Inventories have risen above their desired level, and firms increase production. C) Inventories have risen above their desired level, and firms decrease production. D) Inventories have fallen below their desired level, and firms decrease production.
Division of labor allows people to do tasks for which they have greater natural ability
a. True b. False