One reason goods inflation is preferred by policymakers is that it:
A. keeps the economy away from asset deflation.
B. makes people richer.
C. makes people see the importance of monetary policy.
D. keeps the economy away from asset inflation.
Answer: A
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Which of the following are policy instruments available to the Fed as it tries to achieve its macroeconomic goals?
i. government expenditure on goods and services and taxes ii. the government budget deficit or surplus iii. changes in the federal funds rate A) iii only B) ii and iii C) ii only D) i and ii E) i and iii
The marginal propensity to consume varies with income levels but is independent of consumer expectations
a. True b. False Indicate whether the statement is true or false
The labor force minus the number of employed equals the number of unemployed
a. True b. False Indicate whether the statement is true or false
In 2011 national defense was just as large a general expenditure as Social Security.
A. True B. False C. Uncertain