Which of the following statements is most correct?
A. Monetary policymakers operate in an environment where change is quite common.
B. The quantitative impact on output of altering the target federal funds rate has been quite stable.
C. Monetary policymakers operate in an environment with very little uncertainty.
D. The use of monetary policy in the U.S. has not changed much since the creation of the Fed.
Answer: A
You might also like to view...
A good way to start every Three-Sector-Model analysis is to:
a. Describe what is happening in the foreign exchange market and then proceed to explain what happens in the other two markets simultaneously. b. Identify the economic effects that result from an economic change and then work your way backward to identify the most important part of the analysis, which is the economic shock that started it all. c. Analyze the chain reaction of economic interactions. d. Gather basic information about the three markets and describe qualitatively the economic setting in each market.
The distinguishing feature of the land market is that the
A. supply is highly inelastic. B. supply is highly elastic. C. demand is highly inelastic. D. demand is highly elastic.
The two main tools of macroeconomic policy include monetary policy and fiscal policy. Briefly describe the main components of each.
What will be an ideal response?
Which of the following are included in GDP?
a. Traffic congestion b. Crime c. Pollution d. Underground economic activity e. None of the above