If the LM curve is subject to wider fluctuations than the IS curve, the Federal Reserve could minimize GDP fluctuations by targeting
A) money demand.
B) money supply.
C) the interest rate.
D) the price level.
C
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GDP tends to rise and fall during economic fluctuations but other measures follow the same pattern. One of these measures is
A. the annual precipitation rate. B. the growth of the money supply. C. the inflation rate. D. the unemployment rate.
Refer to the scenario above. Which of the following statements is true of the model?
A) The model predicts that two additional years of education is likely to increase future earnings by 60 percent. B) The prediction of the model can be applied to unlimited years of additional education. C) The predictions of this model cannot be tested empirically. D) The prediction of the model is accurate and will hold for all individuals.
Firms attempt to create a consumer perception of product differentiation through
i. packaging. ii. marketing. iii. advertising. A) i only B) ii only C) ii and iii D) i and iii E) i, ii, and iii
Knowing that Coke controls 80 percent of the cola market and Pepsi controls 20 percent, we can conclude the cola market is:
A. monopolistically competitive. B. a monopoly. C. an oligopoly. D. perfectly competitive.