The Federal Reserve's policy reaction function provides information about:
A. economywide money demand and the output gap.
B. economywide money demand and the long-run target for inflation.
C. the short-run target for inflation and how aggressively target will be pursued.
D. the long-run target for inflation and how aggressively targets will be pursued.
Answer: D
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A preferred shareholder
a. receives a stated dividend yield if profits are sufficient b. can vote at shareholder meetings on important corporate matters c. can vote at shareholder meetings only on the election of the members of the board of directors d. can convert his or her shares into common shares e. receives a dividend before bondholders receive anything
Which of the following will cause an inward shift of the investment function?
A. an increase in business taxes B. business people becoming optimistic about the future C. a decrease in the interest rate D. innovation that improves production efficiency at every level of output