Opponents of inflation targets say that:
a. such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases.
b. the Fed pays less attention to jobs and economic growth when it sets such targets
c. such targets encourage firms to plan on a low and stable inflation rate and hold down price increases.
d. such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases.
e. the Fed pays more attention to jobs and economic growth when it sets such targets.
b
Economics
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If the cost of capital decreases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate outward around the point where only labor is employed in production. D) shift inward in parallel fashion.
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If price elasticity of supply is less than 1
A) supply is elastic. B) demand is elastic. C) demand is inelastic. D) supply is inelastic.
Economics