Intermediate targets are
A. macroeconomic variables that the Fed can influence that are related to the Fed's goals.
B. identical to instruments.
C. macroeconomic variables that never get revised.
D. also known as the Fed's tools.
Answer: A
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Banks earn a profit by
A) charging an interest rate on their depositors' accounts. B) making loans at a higher interest rate than the rates that they offer on their deposits. C) not paying interest on their reserves. D) making loans at a lower interest rate than the rate that they offer on their deposits. E) keeping as many reserves on hand as possible.
Suppose you pre-ordered a non-refundable movie ticket to X-Men: Apocalypse. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?
A) You should go to the movie to maximize your utility. B) You should not waste resources. Since you have paid for the ticket you should watch the movie. C) Your should go to the movie to minimize your losses. D) Since the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not.
In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms
a. True b. False
These are the cost and revenue curves associated with a monopolistically competitive firm in the short run.According to the graph shown, in the long run we can expect that
A. price will increase. B. firms will enter the market. C. profits will increase. D. firms will exit the market.