Due to the lack of timely data for the price level and economic growth, the Fed's strategy
A) targets the exchange rate, since the Fed can control this variable.
B) targets the price of gold, since it is closely related to economic activity.
C) uses an intermediate target, such as an interest rate.
D) stabilizes the consumer price index, since the Fed can control the CPI.
C
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Production involving a positive externality is inefficient
a. True b. False
The Fed is reluctant to change the required reserve rate because:
A. the money multiplier is not impacted by the required reserve rate. B. the time lag between changing the required reserve rate and changes in the money supply can be too long. C. changes in the rate have a small impact on the actual quantity of money. D. small changes in the required reserve rate can have too big of an impact on the money multiplier and the level of deposits.
Which of the following would be the most typical behavior for landlords renting rent-controlled apartments?
a. financing the construction of more housing b. earning large profits from rentals c. lowering the rents for apartments d. avoiding routine maintenance
During 2016, Sean's consumption equals $25,000 and the change in his net worth is -$5,000. Sean's economic income for 2012 is
A. $5,000. B. $20,000. C. $25,000. D. $30,000.