Inflation targeting makes more sense than unemployment targeting, because ________
A) monetary policies affect inflation, not unemployment
B) expected unemployment is not a key determinant of the unemployment rate
C) a commitment to avoid high inflation is inherently more credible than a commitment to avoid high unemployment
D) most voters and most elected officials are more concerned about inflation
B
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In the economic way of thinking, money is
A) the root of all evil. B) what makes the world go round. C) a general medium of exchange. D) an institution, which tends to increase transaction costs. E) the source of scarcity in commercial society.
As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect. B) proves that the fax machine is an inferior good. C) proves that the fax machine is a luxury good. D) is an example of a positive network externality. E) is an example of a negative network externality.