Included among the Fed's primary goals to promote a well-functioning economy are
A) high employment, low inflation, and a high foreign-exchange value of the dollar.
B) price stability, economic growth, and a high reserve ratio.
C) low government budget deficits, interest rate stability, and no inflation.
D) a low rate of unemployment, a low and stable inflation rate, and financial market stability.
Question 2
For consumers with a binding borrowing constraint, a decrease in the real interest rate ________.
A) decreases consumption now, and in the future
B) increases consumption now, and in the future
C) decreases consumption now, and increases future consumption
D) has no impact on consumption
Bipolar disease. The term bipolar means “pertaining to two poles.” The individual with this form of
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