• 2022-06-06
    The Fed operationalizes its goals by focusing on:
    A: core inflation and the output gap.
    B: expected inflation and U.S. dollar exchange rates.
    C: food and energy prices and the growth rate of real GDP.
  • A

    举一反三

    内容

    • 0

      In 2012,U.S.core inflation was 2.1 percent. This inflation rate A: is lower than the inflation rate the Fed accepts as creating stable prices. B: is about equal to the inflation rate the Fed accepts as creating stable prices. C: is more than 2 percentage points higher than the inflation rate the Fed accepts as creating stable prices. D: None of the above answers are correct because the Fed has never associated an inflation rate with stable prices.

    • 1

      While determining public economic policy, the inflation rate most likely relied on is: A: core inflation. B: headline inflation. C: index of food and energy prices.

    • 2

      In which of the following situations would you prefer to be making a loan? A: The interest rate is 9 percent and the expected inflation rate is 7 percent. B: The interest rate is 4 percent and the expected inflation rate is 1 percent. C: The interest rate is 13 percent and the expected inflation rate is 15 percent. D: The interest rate is 25 percent and the expected inflation rate is 50 percent.

    • 3

      As of today, the spot exchange rate is €1.00 = $1.60 and the rates of inflation expected to prevail for the next year in the U.S. is 2% and 3% in the euro zone. What is the one-year forward rate that should prevail? ( ) A: €1.00 = $1.6157 B: €1.6157 = $1.00 C: €1.00 = $1.5845 D: $1.00 × 1.03 = €1.60 × 1.02

    • 4

      When the economy is operating at potential GDP, an unannounced decrease in the rate of growth of the money supply intended to reduce inflation will most likely lead to. lower inflation and: A: a decrease in output in both the short run and the long run. B: no change in output in both the short run and the long run. C: a decrease in output in the short run, and lower inflation but no change in output in the long run.