Multiple Choice
The Fed uses a "core" price index,one that excludes food and energy prices to measure inflation.It does so because
A) food and energy have inelastic demand curves and consumers will buy them regardless of their price.
B) it wants to avoid the blame for high gasoline prices causing inflation.
C) food and energy prices have wide swings that are not related to the causes of general inflation.
D) food and energy prices do not change all that much during the short run,so are irrelevant to the calculation of inflation.
Correct Answer:

Verified
Correct Answer:
Verified
Q142: With a monetary growth rule as proposed
Q143: Beginning in 2008,The Federal Reserve and the
Q144: A monetary policy target is a variable
Q145: In reality,the Fed is unable to use
Q146: If the Federal Reserve targets the money
Q148: Suppose the Fed decreases the money supply.In
Q149: The Federal Reserve can directly affect its
Q150: While many analysts defended the actions taken
Q151: According to the Taylor rule,the Fed should
Q152: A repurchase agreement is the same as