Suppose the Fed's primary goal is price stability and it aims to keep the inflation rate at 2%. If the inflation rate rose above 2%, what should it do?
A) pursue an expansionary monetary policy
B) pursue a contractionary monetary policy
C) reduce the required reserve ratio
D) impose a temporary ceiling on the federal funds rate
Ans: B) pursue a contractionary monetary policy
Economics
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The amount by which an additional unit of a good or service increases a consumer's total utility is:
a. marginal bliss. b. marginal benefit. c. marginal utility. d. marginal.
Economics
If the government removes a tax on a good, then the price paid by buyers will
a. increase, and the price received by sellers will increase. b. increase, and the price received by sellers will decrease. c. decrease, and the price received by sellers will increase. d. decrease, and the price received by sellers will decrease.
Economics