How are rule-based policies similar to adaptive expectations?
What will be an ideal response?
Rule-based policies are tied to past information and understandings. They embody the wisdom and limitations of the past. Rules are immune to new information and judgment. Rule-based policies are immune to short-sighted influences, fads, and conceptual "breakthroughs."
Economics
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The U.S. unemployment rate has averaged around ______ since 1950.
A. 8% B. 10% C. 6% D. 3%
Economics
If all banks are subject to a uniform 20% reserve requirement and demand deposits are the only form of money, a $1,000 open market sale by the Fed would cause the money supply to
A. increase by $1,000. B. decrease by $1,000. C. decrease by $5,000. D. increase by $5,000.
Economics