The proposition that the Fed should concentrate on price stability rather than reducing unemployment is
a. generally accepted by politicians, although few economists accept this proposal.
b. largely accepted by most economists, although politicians do not agree.
c. highly debatable, because many do not agree that price stability should be the most important goal.
d. simply incorrect, and no one accepts this idea anymore.
c
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Which of the following organizations was NOT the result of the Bretton Woods Conference in 1944?
A) the League of Nations B) the General Agreement on Tariffs and Trade C) the International Monetary Fund D) the International Bank for Reconstruction and Development
The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. If we expect the price of jelly to decline by 15%, what is the expected change in the quantity demanded for peanut butter?
A) +15% B) +45% C) +4.5% D) -4.5%