The Fed prefers to target a positive rate of inflation because a. the Fed target is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Fed prefers to target a positive rate of inflation because a. the Fed target is flexible as long as the inflation rate is a positive number. o b. the Fed keeps inflation high to benefit those with high debt. c. the Fed wants to keep inflation high to keep unemployment low. O d. the Fed wants some inflation to provide a buffer from deflation QUESTION 7 Why is the FOMC more concerned about persistent inflation rather than transitory inflation? O a. Transitory inflation is likely due to the Fed using monetary policy tools to push unemployment down, which is worth the tradeoff. b.Persistent inflation will likely be short-lived as numbers "drop out' of the year-over-year calculations. c. Persistent inflation is short-lived, and therefore its effects are not concerming to policymakers. d. Transitory inflation is likely due to short-lived effects such as supply chain bottlenecks that will be corrected as workers and businesses react QUESTION 8 Which measure of inflation does the FOMC specify as its inflation target? O a. Personal consumption expenditures price index (PCEPI) O b. GDP deflator Oc Consumer Price Index (CPI) O d. Core consumer price index (core CPI) The Fed prefers to target a positive rate of inflation because a. the Fed target is flexible as long as the inflation rate is a positive number. o b. the Fed keeps inflation high to benefit those with high debt. c. the Fed wants to keep inflation high to keep unemployment low. O d. the Fed wants some inflation to provide a buffer from deflation QUESTION 7 Why is the FOMC more concerned about persistent inflation rather than transitory inflation? O a. Transitory inflation is likely due to the Fed using monetary policy tools to push unemployment down, which is worth the tradeoff. b.Persistent inflation will likely be short-lived as numbers "drop out' of the year-over-year calculations. c. Persistent inflation is short-lived, and therefore its effects are not concerming to policymakers. d. Transitory inflation is likely due to short-lived effects such as supply chain bottlenecks that will be corrected as workers and businesses react QUESTION 8 Which measure of inflation does the FOMC specify as its inflation target? O a. Personal consumption expenditures price index (PCEPI) O b. GDP deflator Oc Consumer Price Index (CPI) O d. Core consumer price index (core CPI)
Expert Answer:
Answer rating: 100% (QA)
D The fed prefers to target a positive rate of inflation because The fed target is flexa... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Why do policymakers want to keep inflation low? Who suffers when there is cyclical unemployment?
-
Because government policymakers do not consider inflation desirable, their policies cannot be the source of inflation. Is this statement true, false, or uncertain? Explain your answer.
-
Why are small businesses more likely than large businesses to be innovative?
-
Discuss the importance of asset allocation when developing a portfolio. In general, what is the conventional guidance in terms of allocating assets across the following three asset classes (equities,...
-
One manager states, When a new system is proposed, I want a written report, not an oral presentation, which is like a sales pitch. I only want to see the facts about costs, benefits, and schedules....
-
Compute the effective annual rates for the following: a. 2 percent compounded yearly. b. 2 percent compounded semi-annually. c. 2 percent compounded quarterly. d. 2 percent compounded monthly. e. 2...
-
Marketing variance analysis Leo decided to open a new bar called Leo's Place near a large college campus. Leo's Place plans to offer only three products: a dark and a light beer on tap, and a bottled...
-
Weierman Department Store is located in the downtown area of a medium-sized city in the American Midwest. While the store had been profitable for many years, it is facing increasing competition from...
-
What would the adjusted trial balance be: 1 - Jul Rent Expense 1 , 2 0 0 . 0 0 Cash 1 , 2 0 0 . 0 0 Paid monthly rent 1 - Jul Advertsing Expense 9 0 0 . 0 0 Accounts Payable 9 0 0 . 0 0 Paid...
-
Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end robots. Customers may pay using cash or if appropriate, credit is extended to...
-
Create a Java program from the following UML class diagram. Each customer has unique id and is linked to exactly oneaccount. Account owns shopping cart and orders. Customer could register as a web...
-
1. The following table shows the unit shipping cost between cities, the supply, demand and the destination city. Use the Minimum Cost Method to find the initial solution (or BFS) and then find the...
-
Patton Dyes manufactures colorings, primarily for textiles. Information on the work in process follows: Beginning inventory, 150,000 partially complete liters. Ending inventory, 120,000 liters; units...
-
Ten replicate analyses of the concentration of mercury in a sample of commercial gas condensate gave the following results: 23.3 22.5 21.9 21.5 19.9 21.3 21.7 23.8 22.6 24.7 ng ml1 (Shafawi, A.,...
-
An employee is paid a salary of $11,050 per month. If the current FICA rate is 6.2% on the first $130,000 of earnings, and the Medicare tax rate is 1.45% of all earnings, how much should be withheld...
-
In figure the voltage gradient (voltage between ECF and ICF) across membrane is -60 mV. The ion channel is mostly closed. Only if a toxin released via the nozzle, it opens the voltage gated ion...
-
62. In 2023, Company JJJ reported the following: - Total Liabilities: $300,000 - Total Equity: $500,000 - Total Assets: $800,000 Calculate the debt-to-equity ratio and interpret the result...
-
Use the T account for Cash below to record the portion of each of the following transactions, if any that affect cash. How do these transactions affect the companys liquidity? Jan. 2 Provided...
-
Neither free trade nor prohibited trade comes with benefits only. Both come with benefits and costs. Therefore, free trade is no better or worse than prohibited trade. Comment.
-
A person who is in consumer equilibrium has maximized his or her total utility. State the condition for consumer equilibrium.
-
Starting with long-run equilibrium, use the monetarist model to explain changes in the price level and Real GDP in the short run and long run due to a decline in velocity.
-
Defective units decision analysis Claymore Manufacturing Company produces auto- mobile stereo systems in job lots. Production errors occasionally occur, and defective units are reworked if it can be...
-
Accounting for scrap materials Alger Company generates copper scrap in its coil man- ufacturing department. The scrap is gathered and weighed at the end of each work day and sent to the scrap...
-
Using scrap materials accounting information FLC Corporation manufactures wooden picnic tables which are sold to department stores and garden stores. Recently the company accepted an offer to make...
Study smarter with the SolutionInn App