In 2012, the Fed

question 181

Multiple Choice

In 2012, the Fed

• A)adopted a strict monetary rule of 2 percent per year.
• B)adopted inflation targeting, setting a target rate of 2 percent per year.
• C)relaxed all monetary rules and targets in favor of a fully flexible monetary policy.
• D)adopted a nominal GDP growth rate target of 6 percent per year.

Grasp the nature and consequences of network externalities in market dynamics and consumer choice.

Analyze the components and calculation of consumer surplus in market transactions.

Discern how pollution and environmental demands can influence market demands and government policies.

Assess the role of elasticity in demand and its implications for pricing and market strategies.

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Definitions:

Current Cost

The amount of money that would have to be paid currently to replace an asset or to purchase a service.

Net Realizable Value

The estimated selling price of goods, minus the cost of their sale or completion.

Exit Value

The estimated amount that an asset or investment could be sold for at the end of its useful life.

Economic Resource

Assets or inputs that have the potential to contribute to the production of goods and services, providing economic benefit to businesses or individuals.