Economists who really do want to take discretion away from the Fed, by imposing rules on ________, face the problem of ________
A) policy instruments, the Fed requiring discretion to adhere to the rule
B) policy instruments, slippages between instruments and target variables
C) target variables, the Fed requiring discretion on how to achieve the rule
D) target variables, slippages between instruments and target variables
B
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If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the
A) demand for apples decreases. B) quantity of apples demanded decreases. C) quantity of apples supplied decreases. D) Both answers A and B are correct.
According to the text, economists consider full employment to occur when
A) the sum of frictional unemployment and structural unemployment equals zero. B) the unemployment rate consists of only frictional and structural unemployment. C) frictional unemployment equals zero. D) everyone who wants a job has a job.