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Which statement about inflation targeting is true? a) inflation targeting calls for the Fed to set the growth rate of the money supply equal to the long-term growth rate of the economy b) advocates of inflation targeting believe the economy is inherently stable c) if the Fed pursues an inflation target, it increases the money supply when the actual inflation rate is below the target inflation rate d) if the Fed pursues an inflation taget, it does not change the money supply unless the actual or forecast infaltion rate is above the target inflation rate
The demand function for a certain brand of CD is given by p=-.01x^2-.2x+11 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the producers' surplus if the market price is set at ..
Pick one market in which the price system does not produce an equitable price and quantity of output. Write a paper of 250 words minimum discussion with at least (2) sources cited in the MLA format. What are the alternatives to government interventio..
what is the expected annual real depreciation consistent with interest rate parity?
In the market of identical firms, the market demand function is Q=1000-1000P. The marginal cost is the same for all firms, mc=0.28. Characterize what is the firm’s optimal output and price when there is a single firm in the market. Characterize what ..
Describe whether Indian Consumer goods industry is growing at the cost of future profitability.
“The law of demand says that when the price of something falls, more should be consumed. But when the price of a vacation falls, I still just take one vacation per year.” How does the law of demand fit in this circumstance?
Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what ..
Two bookstores are competing for customers. Both bookstores can decide to offer discounts to attract more customers. Bookstore-A has a 30% probability of offering a discount. The probability that Bookstore-B will offer a discount is unknown, and is r..
Consider the following sequential ZSG. First, nature chooses heads or tails, each with probability one-half. Player 1 then sees nature’s choice, and chooses heads or tails. If player 2’s choice matches nature’s choice, player 2 wins a dollar from pla..
Which of the following is not an accurate description of what can cause inflation?
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average t..
When the price of one good decrease, the associated substitution effect is represented by a:
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