If the Fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as
A. active policymaking.
B. fiscal policymaking.
C. passive policymaking.
D. direct policymaking.
Answer: A
You might also like to view...
The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a ____
a. microeconomist. b. normative economist. c. macroeconomist. d. Ceteris paribus. e. social science economist.
Government failure refers to
a. a mismatch between employer incentives and firm objectives b. the failure of government to provide an efficient quantity of public goods c. the inability of firms to produce output efficiently d. the overabundance of competitors with government in production e. the under-allocation of tax revenues
According to the text, there is no such thing as a free lunch because
A. The producer must charge something to cover the cost of production. B. The government must raise taxes to pay for the lunches. C. No one would pay for lunch anymore if they could get it for free. D. Resources used to produce the lunch could be used to produce other goods and services.
The short-run Phillips curve implied when all changes in aggregate demand are caused by changes in the money supply is
a. upward sloping. b. downward sloping. c. horizontal. d. vertical. e. None of the above