Intermediate targeting the money supply is preferable if there is a(n)
a. increase in the severity of supply shocks.
b. unstable money demand function.
c. low interest elasticity of money demand.
d. difficulty in the measurement of money demand.
e. none of the above.
C
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Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat
Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.
Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages?
A) 20 B) 160 C) 180 D) 540
IBM went to the trouble of adding five separate microchips to its F-series printers to slow them down and sell them as E-series printers for a lower price
How could any firm justify adding extra costs to production for a good that will carry a lower price tag?
If the government levies a $1 excise tax on each unit of a good sold, what will happen to the producer's cost curve?
a. The average total cost and marginal cost curves will shift downward by the amount of the tax. b. The average total cost and marginal cost curves will shift upward by the amount of the tax. c. The marginal cost curve will shift upward by the amount of the tax; the average total cost curve will remain unchanged. d. Both the marginal cost and average total costs will remain the same since taxes are not a cost of production.