If the Fed decided to target price levels and inflation was lower than its target for a period of time, the Fed would be required to
A) permanently raise inflation above its target to reach and maintain its price level target.
B) permanently lower its price level target to align it with the inflation rate.
C) temporarily lower its inflation target to match its price level target.
D) temporarily raise inflation above its target to reach its price level target.
D
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In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869, transfers received from the government = $296, interest payments on the government's debt = $103, consumption = $8148, and government purchases = $185
The country had private saving equal to A) $285. B) $3850. C) $2397. D) $2112.
Suppose an agent must pay the full marginal cost for an item but splits the marginal revenue with the principal. As a result,
A) joint profit is maximized. B) joint profit is not maximized. C) the agent will not enter into such a contract. D) the agent wishes to sell as many items as he can.
Assume an equilibrium price of $7 and equilibrium quantity of 8 units at demand D and supply S2 in the graph shown. Total surplus is:
A. $32.
B. $12.
C. $56.
D. $16.
The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well
a. True b. False Indicate whether the statement is true or false