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,...
-
Al is divorced and owns a house. Al has no reasonable expectation of benefit from the life of Bea, his ex-spouse, but applies for insurance on her life anyway. Al obtains a fire insurance policy on...
-
Considering the nature of the business environment today, do you think that public relations will play a more significant role or less significant role in future marketing communications strategies?...
-
Krasnoy Tire, a maker of tires for cars, trucks, and tractors, is trying to determine how to account for various factory costs. The costs include the following: a. Wages earned by a factory...
-
Henderson Company had an unadjusted cash balance of $7,215 as of May 31. The companys bank statement, also dated May 31, included a $68 NSF check written by one of Hendersons customers. There were...
-
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Two blind bids have the same size, long/short,flat delta, and have similar characteristics. The stocks on average have the same volatilities. One has a standard deviation loss/gain of 30 bps, the...
-
Yijie Chan is the proprietor of a property management company near the campus of a local university. The business has cash of \(\$ 72,000\) and furniture that cost \(\$ 24,000\) and has a market...
-
Suppose for Exercise 5.24, there is a second car horn for medium-sized cars with demand that is normally distributed with a mean of 1500 and a standard deviation of 200. All other information from...
-
A-1 Security Consultants purchased a building for \(\$ 500,000\) and depreciated it on a straight-line basis over a 40 -year period. The estimated residual value was \(\$ 100,000\). After using the...
-
Turn to the Pykestone example (Case Study 14.1) and draft an audit programme for: (a) non-current asset additions during the year (b) non-current asset disposals during the year (c) non-current...
-
Flips Gymnastics Center paid \(\$ 140,000\) for fitness equipment that is expected to have a 10 -year life. The expected residual value is \(\$ 40,000\). Select the appropriate MACRS depreciation...
-
Hi, for my operations management class I need to build a prototype for a mobile application that implements a concept or tools from operations management. I'll make the app itself but I need help...
-
Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.78 and Kr 5.86, respectively. The annual risk-free rate in the United States is 3.8 percent, and the annual risk-free rate...
-
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.
-
This project demonstrates how Excel can be used to create a variety of useful documents for small businesses. a. Read the article A Do-It-Yourself Automated Invoicing System, by Jacob M. Rose, which...
-
Modify Table 11-1 by indicating if each specific control procedure listed there is preventive (P), detective (D), or corrective (C) in nature. Table 11-1 Threats and Controls in the Expenditure Cycle...
-
The receiving department at Culp Electronics Company processes inventory deliveries upon arrival by means of online data terminals located on the receiving dock. Each inventory receipt entered into...
Study smarter with the SolutionInn App