Q.1; The Fed’s “dual mandate†includes ______, and the policyinstruments available to the Fed as it tries to achieve its dualmandates _______ .
a. zero inflation and moderate long-term interest rates; thegovernment budget deficit or surplus
b. maximum economic growth and zero inflation; the federal fundsrate
c. maximum aggregate demand and aggregate supply; governmentexpenditure on goods
d. maximum employment and stable prices; the federal fundsrate.
Q.2; One of the major reasons why the United States exports jetairplanes is:
a. the U.S. can sell jet airplanes at a higher price than othernations.
b. the U.S. owns more physical endowments, such as mineralresources, than other countries.
c. foreign nations have a higher opportunity cost of productionof jet airplanes.
d. the U.S. is able to outproduce other countries in jetairplanes.
