The Fed prefers to change its interest rate target only rarely because
a. those targets affect productivity in the labor force
b. a fluctuating stock and bond market signals a recession
c. interest rates are greatly overrated as a measure of economic performance
d. it is so difficult to do so
e. the changes destabilize the financial markets
E
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If a country is currently lending more to the rest of the world than it is borrowing from the rest of the world, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.
On Green Island, the demand for pencils is perfectly elastic and the supply of pencils is perfectly inelastic. If a sales tax on pencils is introduced
A) the tax is split evenly between the buyers and sellers. B) the buyers pay the entire tax. C) no one pays the tax. D) the sellers pay the entire tax.