If the Fed's primary goal is price stability which macroeconomic variable should it target?
A) the price level itself or a particular rate of change in the price level
B) the growth rate of money supply
C) the real money supply
D) real GDP
Ans: A) the price level itself or a particular rate of change in the price level
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The Webb-Pomerene Act of 1918 prohibits price fixing and other anticompetitive agreements that pertain solely to goods for export
Indicate whether the statement is true or false
By failing to expand output to the point where marginal benefit equals market price, firms with market power produce less of the good and charge a higher price than would be socially optimal
Indicate whether the statement is true or false
Explain how lack of choice relates to where the tax burden falls in the marketplace.
What will be an ideal response?
If the required reserve ratio decreases, the:
A. money multiplier increases. B. money multiplier decreases. C. amount of excess reserves the bank has decreases. D. money multiplier stays the same.