Highunemploymentisundesirablebecauseit
A. resultsinalossofoutput.
B. alwaysincreasesinflation.
C. alwaysincreasesinterestrates.
D. reducesthefederalbudgetdeficit.
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Pricestabilityisdesirablebecause
A. inflationcreatesuncertainty,makingitdifficulttoplanforthefuture.
B. everyoneisbetteroffwhenpricesarestable.
C. pricestabilityincreasestheprofitabilityoftheFed.
D. itguaranteesfullemployment.
Inflationresultsin
A. easeofplanningforthefuture.
B. easeofcomparingpricesovertime.
C. socialharmony.
D. difficultyinterpretingrelativepricemovements.
Whicheconomicgoalsofmonetarypolicymakeplanningforthefutureeasier?
A. Pricelevelstability
B. Interestratestability
C. Exchangeratestability
D. Alloftheabove
Whichofthefollowingisnotanoperatingtarget?
A. Nonborrowedreserves
B. Monetarybase
C. Federalfundsinterestrate
Discountrate
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