Which of the following statements is true?
a. The Fed can target the interest rate and money supply at the same time but only during periods of inflation
b. All of the answers to this question are true.
c. If the Fed chooses a money supply target, it runs the risk of interest rate variations that may create a new set of problems.
d. If the Fed chooses a money supply target, it runs the risk of money supply variations that may create a new set of problems.
e. If the Fed chooses an interest rate target, it runs the risk of interest rate variations that may create a new set of problems.
C
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With high inflation ________
A) stock market investors are always worse off than consumers and households B) producers are always worse off than consumers C) creditors are always worse off than debtors D) all of the above E) none of the above
An exclusion contract
A) is a form of entry deferral. B) gives a firm the right to be the exclusive provider of a good in a particular market. C) may not always be profitable for the incumbent. D) All of the above.