One thing the Fed has learned over the past twenty-five years is:
A. the money multiplier has a trend rate of growth that is fairly constant.
B. it should focus its attention on targeting M2.
C. the money multiplier is fairly constant no matter what changes are made to the monetary base.
D. the money multiplier is unstable over time.
Answer: D
Economics
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If a perfectly competitive firm finds that the price exceeds its ATC, then the firm
A) will raise its price to increase its economic profit. B) will lower its price to increase its economic profit. C) is making an economic profit. D) is incurring an economic loss. E) is making zero economic profit.
Economics
The lowest wage for which a person is willing to supply labor is known as the
A) substitution wage. B) income effect. C) derived wage. D) reservation wage.
Economics