The primary reason why the Fed cannot systematically surprise the public with its monetary policy is
A) the nonneutrality of money.
B) the presence of productivity shocks that generate real business cycles independent of the monetary side of the economy.
C) the presence of rational expectations among the public.
D) the presence of propagation mechanisms within the economy.
C
Economics
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As of 2007, the United States is the world's largest importer
Indicate whether the statement is true or false
Economics
If saving is less than investment, the appropriate countercyclical monetary policy would be:
A. an open market sale of government bonds. B. a cut in the reserve requirement. C. a cut in the federal funds rate. D. a cut in the discount rate.
Economics