The Fed has attempted to solve the problems of being unable to directly control the variables that determine economic performance and the timing lags in observing and reacting to economic fluctuations by
A) pressing Congress for legislation which would expand its powers.
B) using targets to meet its goals.
C) abandoning some goals in order to achieve others.
D) devising new monetary policy tools.
B
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The currency component includes paper money and coins held in
A) bank vaults. B) ATMs. C) the hands of the nonbank public. D) the central bank.
Which of the following questions is addressed primarily by macroeconomics? a. The allocation of scarce satellite orbit slots
b. Decisions made by a manufacturer of a particular good. c. Policies to control the inflation rate. d. A consumer's decision to buy more clothing and less food.
Which of the following statements is correct?
a. Few economic models incorporate assumptions. b. Different economic models employ different sets of assumptions. c. Good economic models attempt to mimic reality as closely as possible. d. Economic models, to be accepted, must be tested by conducting experiments.
Spending for unemployment compensation and welfare benefits increase automatically
A. When the economy expands. B. When voters make the decision to increase these items. C. Only when the fiscal year begins. D. When the economy goes into recession.