Author Question: All of the following have enhanced the Fed's credibility in conducting monetary policy except A) ... (Read 58 times)

WWatsford · **on:** Jun 29, 2018

All of the following have enhanced the Fed's credibility in conducting monetary policy except

A) discontinuing the policy of announcing whether it considered the economy to be at greater risk of inflation or recession following each FOMC meeting.
B) making the minutes of the open market committee meetings public.
C) following through with changes it has announced.
D) revealing the Fed's target for the federal funds rate.

Question 2

Because education generates a positive externality, ______.

A. everyone who wants a college education should get one
B. graduates' marginal benefit exceeds the society's value of the educa-tion
C. the quantity of education undertaken will achieve the social interest if it is free
D. subsidies to colleges or vouchers to students are means of achieving the efficient number of graduates

Liamb2179 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

D Figures 9.9 and 9.10 show how subsidies and vouchers in-crease the number of students to be equal to the efficient number.