To eliminate built-in inflation from the economy, the Fed must
a. announce its intention to have a single policy objective
b. create a recession
c. maintain a constant rate of inflation
d. resist the temptation to change its interest rate targets
e. work closely with Congress and the President
B
Economics
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At the equilibrium level of income it must be true that total
a. income equals total spending. b. product equals total output. c. output equals total inventory. d. income equals total saving.
Economics
While price misperceptions can cause an increase in labor supply and GDP in the short-run, in the long run:
a. money is no longer neutral in the model. b. labor supply returns to its initial position. c. money negatively impacts real GDP. d. all of the above.
Economics