Current Federal Reserve policy focuses on interest rates, rather than on monetary aggregates, because ________
A) monetary aggregates do not provide clear or consistent signals to guide policymakers
B) open market operations affect interest rates more directly than they affect monetary aggregates
C) according to the Fisher effect, the interest rate is a key determinant of the inflation rate
D) all of the above
E) none of the above
A
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Federal Express's purchase of trucks and planes
A) is financial capital. B) creates wealth. C) is an example of physical capital. D) reflects capital gains. E) includes depreciation.
Your upstairs neighbor is the first-chair violinist in the local symphony orchestra. Because you are very fond of violin music, you sit on your balcony each night to listen to her rehearse. In this case, your violin-playing neighbor is an example of a
A. public good. B. good that imposes an external cost. C. Pareto good. D. good that provides an external benefit.