« previous next »

Author Question: How might inflation targeting improve the Fed's monetary policy? What will be an ideal ... (Read 98 times)

future617RT

  • Hero Member
  • *****
  • Posts: 543
on: Jun 29, 2018
How might inflation targeting improve the Fed's monetary policy?
 
  What will be an ideal response?

Question 2

Which of the following statements about a circular flow model is false?
 
  A) Producers are buyers in the factor market and sellers in the product market.
  B) Households are neither buyers nor sellers in the input market.
  C) Households are buyers in the product market.
  D) Producers are buyers in the factor market.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


31809pancho

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

Inflation targeting, under which the Fed would make public its inflation target and face penalties if the target was missed, would improve the Fed's monetary policy because it would remove uncertainty. The public would know what the Fed's policy was and would not need to guess at what the inflation rate would be the future. This certainty would improve people's decision making about saving and investment and thereby improve economic performance.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Cade and colleagues discovered a way to improve athletic performance and prevent salt and water imba Cade and colleagues discovered a way to improve athletic performance and prevent salt and water imba
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Group fitness activities geared toward senior citizens can improve their physical strength and ... Group fitness activities geared toward senior citizens can improve their physical strength and ...
Targeting female fetuses for abortion has become a main issue of the emerging feminist movement in ... Targeting female fetuses for abortion has become a main issue of the emerging feminist movement in ...
Scientific monitoring with environmental policy (SOER) Scientific monitoring with environmental policy (SOER)
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Video: Transcription - Introns and exons

For a complete list of videos, visit our video library