If the Fed has the discretion to choose its policy and announces a low inflation policy, then
a. the public is likely to discount this claim because the Fed has an incentive to change their policy in the future.
b. the public is likely to believe this claim because the Fed has no incentive to change their policy in the future.
c. the Fed will always cheat and increase inflation in the future.
d. the Fed will have to keep inflation lower in the future or they will be voted out of office.
e. none of the above.
A
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A tariff is a:
a. limit on the number of goods that can be imported. b. tax on an imported product. c. tax on an exported product. d. limit on the number of goods that can be exported.
Current calculations make it clear that for the vast majority of young workers, the rate of return on Social Security taxes and benefits will be
A. roughly equal to what would have been generated in private stock-market investments. B. greater than what would have been generated in private stock-market investments. C. lower than what would have been generated in private stock-market investments. D. taxed more heavily than what would have been generated in private stock-market investments.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
Which of the following activities is NOT included in the production process?
A) determining the value of the goods B) making the goods C) packaging the goods D) transporting the goods