For this question, assume that the Fed sets monetary policy according to the Taylor rule. Suppose current U.S. macroeconomic conditions are represented by the following: ? > ??* and u < un. Given this information, we would expect that the Fed will
A) implement a monetary contraction.
B) implement a monetary expansion.
C) maintain its current stance of monetary policy.
D) more information is need to answer this question.
A
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Which of the following statements about a perfectly competitive market is INCORRECT?
A. There are many sellers, each supplying a small quantity. B. There are many buyers, each purchasing a small quantity. C. The market sells homogeneous products. D. Buyers and sellers cannot enter exit the market freely.
Which of the following would be studied by macroeconomists?
A. Inflation in developing countries. B. The effect of government subsidies on sugar prices. C. The impact of the minimum wage on families below the poverty level. D. The effect of rent controls on housing prices in New York City.
In a market with asymmetric information, ________
A) buyers tend to forget relevant information about the good being traded B) buyers set the price of the good being traded C) buyers and sellers have different information about the good being traded D) buyers have very low bargaining power
In which case would you be most likely to expect inflation to occur?
A) The government runs a sustained government deficit by lowering taxes. B) The government runs a sustained government deficit by increasing purchases. C) The government runs a sustained primary deficit by increasing purchases. D) The government funds its sustained deficit by increasing the money supply.