Which of the following techniques adopted by the central banks around the world have helped them to achieve credibility?
a. Maintaining a low rate of inflation through tight monetary policies
b. Publicly announcing a target rate of inflation
c. Refusing to bail out the commercial banks at times of failure
d. Supporting all government budget deficits through deficit financing
e. Reducing unemployment amidst high inflation
b
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While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes
Indicate whether the statement is true or false
Whatever a society uses as money, the distinguishing characteristic is that it must
A) be completely inflation proof. B) be generally acceptable as payment for goods and services or in the repayment of debt. C) contain gold. D) be produced by the government.
Suppose coal sells for $50 per ton and can be mined at a constant marginal cost of $20 per ton. Forecasters predict that the price of coal next year will be $55
If your marginal cost next year will still be $20 and the interest rate is 10%, do you sell coal today?
Examples of incentive pay include
a. allowing employees a certain number of personal days b. providing onsite parking for employees c. cleaning the worksite with weekly janitorial service d. prizes to the employee team to win a project goal tournament