Some economists object to having the Fed concentrate solely on price stability because it would
A) make stabilizing the economy more difficult. B) lessen its credibility.
C) privatize the Federal Reserve. D) free the Fed from political pressure.
A
You might also like to view...
What happens in a perfectly competitive industry when economic profit is greater than zero?
A) Existing firms may get larger. B) New firms may enter the industry. C) Firms may move along their LRAC curves to new outputs. D) There may be pressure on prices to fall. E) All of the above may occur.
If the reserve ratio is 20 percent, then the money multiplier is approximated to be:
A. 20. B. 5. C. 10. D. 2.
Which of the following are not included in the M1 definition of the money supply?
a. cash and currency b. checkable deposits c. money market deposit accounts d. All of the above are included.
The growth rate of total output equals
A. The growth rate of the labor force plus the growth rate of productivity. B. Gross investment minus depreciation. C. Real GDP per worker. D. Real GDP per capita growth rate.