Which of the scenarios best reflects the meaning of the term inflation targeting?
A) A local shopping mall offers an "inflation discount," which compensates for the recent increase in prices, in the hopes of targeting savvy consumers.
B) Hoping to reduce inflation to improve public opinion, the Federal Reserve decides to lower interest rates.
C) A central bank is expected to achieve a 3% annual inflation rate.
D) In anticipation of the upcoming election, the chairman of the Federal Reserve lowers interest rates, hoping to win support for the incumbent president.
Ans: C) A central bank is expected to achieve a 3% annual inflation rate.
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No distinction is made between the effects of anticipated and unanticipated policy in ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) traditional Keynesian and real business cycle theory
The biggest difference between mutual funds and life insurance policies is:
A. when you can have access to your contributions. B. one is a savings plan, and one allows you to reduce your risk. C. one is considered savings, and the other is an investment. D. when you are required to contribute to them.
Men and women in a particular industry are equally qualified. If one employer has a preference for male employees, then in the long run
a. men will receive higher wages b. women will receive higher wages c. there will be no wage differential between men and women d. comparable worth laws would create wage differentials between men and women e. the demand for male employees will decrease
Taking action to reveal private information about someone else is called:
A. illegal. B. discriminating. C. signaling. D. screening.