Which of the following is not an argument against inflation targeting?
A) Inflation targeting reduces the flexibility of the Fed to pursue other policy goals.
B) Inflation targeting assumes that the Fed can accurately forecast future inflation rates.
C) Inflation targeting holds the Fed accountable for an inflation goal, but may make it less likely the Fed will achieve other goals.
D) Inflation targeting makes monetary policy ineffective because the targets are publicly announced.
D
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When duopoly games are repeated and a "tit for tat" strategy is used,
A) the competitive outcome is more likely to be reached than when the game is played once. B) the monopoly outcome is more likely to be reached than when the game is played once. C) both firms begin to incur economic losses. D) one firm goes out of business. E) Because the game is repeated, it is impossible to predict whether the competitive or the monopoly outcome is more likely.
The money supply is determined
a. only by the Fed. b. by the Fed and banks. c. by the Fed, banks, and the public. d. by congress. e. by the President.