When the Fed chooses to target the interest rate target, it loses control over targeting the economy's money supply
Indicate whether the statement is true or false
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President Obama's fiscal stimulus plan that helped the U.S. economy to come out of recession in 2009 is an example of an automatic stabilizer
Indicate whether the statement is true or false
In the United States, major money policy decisions are made by the ______.
a. 12 banks that comprise the Fed b. banks that have ownership of the Fed c. president of the United States with approval from the Senate d. Federal Reserve Board of Governors and the FOMC
Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds. The marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18
Is Adhira maximizing her utility? A) No, she must buy 1 more chocolate bar to equate her quantities of the two goods. B) No, she must cut back to 3 bags of almonds to equate her quantities of the two goods. C) No, without information on her income and the prices of the two goods, we cannot answer the question. D) Yes, the marginal utility from the last unit of each good is equal.
The production possibility frontier represents
A. the ability of the GDP to grow relative to other countries' GDPs. B. the shifting of priorities to meet demand. C. the different possible combinations of output. D. demand tempered by inflation.