Critics of the Federal Reserve maintain that, to correct the credibility problem of monetary policy, the Fed should:
a. tighten monetary policy.
b. be required to maintain a growth rate of the money supply that is fixed by law.
c. give more power to the Federal Open Market Committee.
d. ignore public opinion and establish more discretionary power over monetary policy.
e. merge with the U.S. Treasury and be dissolved as an independent agency.
Question 2
The longer the time buyers have to respond to a decrease in price, the more likely it is that the total revenue for the good in question would increase as a result.
a. True
b. False
Indicate whether the statement is true or false
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