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
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