The Fed can use contractionary monetary policy in an attempt to keep inflation from increasing
Indicate whether the statement is true or false
TRUE
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The production of a good or service by an authority that receives the most of its revenue from the government is referred to as
A) public provision. B) private subsidies. C) vouchers. D) copyrights. E) Coasian production.
What is an advantage of using options instead of forward contracts when speculating on exchange rates?
What will be an ideal response?
The IS-MP model assumes the Fed targets ________, and the IS-LM model assumes the Fed targets the ________
A) the expected inflation rate; the unemployment rate B) short-term nominal interest rates; the money supply C) the output gap; the long-term real interest rate D) short-term real interest rates; the expected inflation rate
One advantage of fiscal federalism is that its decentralized nature _____
a. allows for more rigid rules b. gives voters more choice c. creates thousands of bureaucracies d. forces local governments to collude with one another