One reason the Fed tolerates ongoing inflation is because it
a. believes that the CPI understates the actual inflation rate
b. believes that the CPI overstates the actual inflation rate
c. accepts the idea that a zero inflation rate would make labor markets work more smoothly
d. wants to focus more on price stability than on full employment
e. is uncertain about the long-run stability of the Phillips curve
B
Economics
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Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario B will be
A) 3%. B) 4%. C) 6%. D) 8%.
Economics
An estimator of ? is said to be linear if
A) it can be estimated by least squares. B) it is a linear function of Y1,…, Yn . C) there are homoskedasticity-only errors. D) it is a linear function of X1,…, Xn .
Economics