Inflation targeting requires that the central bank
A) publicize its targeted inflation rate.
B) avoid changing the amount of the monetary base.
C) use a short-term interest rate as its policy instrument.
D) set a fixed price real assets.
E) adopt a k-percent rule for the inflation rate.
The figure above shows the market for reserves.
A
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The only goods you consume are pizza and soda. Both are normal goods. You consider pizza and soda to be substitutes. Which of the following will lead you to eat more pizza?
A) The price of a pizza falls. B) The price of a soda falls. C) The price of a soda rises. D) Both answers A and C are correct.
Paul Bergen and Virginia Clancy each own a 100-acre soybean farm in Soyburg, Illinois. Together they grow 1/1000th of 1 percent of the nation's soybeans. When they merge, it will:
a. b and e. b. be a horizontal merger. c. reduce competition in the soy market. d. increase the market power of Paul and Virginia. e. probably go unnoticed outside of Soyburg.