Question

TRUE OR FALSE EXCEPT FOR 15! PLEASE REPLY ASAP!!!!1 12.)Inflation is currently under 2% a year,...

TRUE OR FALSE EXCEPT FOR 15! PLEASE REPLY ASAP!!!!1

12.)Inflation is currently under 2% a year, and has never been more than 10% a year.

13.)Fiscal Policy consists of government spending and taxing.

14.)Monetary Policy is conducted by theFederal Reserve.

15.)What is the dual mandate of the FOMC?

A.Price stability and economic growth

B.Price stability and low inflation

C.Economic growth with higher prices

D.Economic growth with low inflation

17.)Insider trading refers to company employees using public information to buy and sell stock.

18.)In an efficient market the intrinsic value and the market price of a stock are the same.

Homework Answers

Answer #1

Answer 12: False Highest inflation in a year has been around 19.66% after introduction of CPI

Answer 13: True. These two lead to 3 stances of expansionary, contraction and Neutral.

Answer 14: True. Federal Reserve is responsible for this

Answer 15: A) Price stability and economic growth which leads to sustainable employment the two goals of dual mandate

Answer 17: False. It refers to private information of the company used to buy and sell stock

Answer 18: True. As everyone knows and gets the information at the same time there wont be any gap in the market price

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