Suppose workers do not believe the Fed will implement its announced monetary policy plans and the Fed wants to achieve low unemployment. In this situation the Fed would be best off:
a. implementing a policy of high money growth.
b. announcing and implementing a policy of low money growth.
c. announcing a policy of high money growth and implementing a policy of low money growth.
d. following a policy that forces the actual inflation rate to coincide with the expected inflation rate.
e. promoting a low rate of inflation and adjusting actual policy plans to economic conditions.
a
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The range of output over which a firm's average variable cost is decreasing is the same as the range over which its
A) marginal cost is increasing. B) average fixed cost is decreasing. C) average product is increasing. D) average product is decreasing.
If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in
a. foreign portfolio investment. b. foreign financial investment. c. foreign direct investment. d. indirect foreign investment.