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RealMoney Radio Mailbag: Not Too Hot, Not Too Cold

A listener learns the definition of Goldilocks economy.

Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

What is a Goldilocks economy?- Shavon from California

Jim Cramer

: A Goldilocks scenario is when things aren't so good that the Fed has reason to keep raising rates, but not so bad that they are falling apart. This type of economy tends to keep the Fed and other policymakers on the sidelines, allowing the economy to gradually improve, a favorable scenario for stocks.

If Advanced Micro Devices (AMD) - Get Advanced Micro Devices Inc. Report actually did buy ATI Technologies (ATYT) , what would happen to AMD's share price?-- Bill from Yonkers

Jim Cramer

: If AMD actually did go and make a bid for ATI, AMD's share price would probably go down. This would be a normal reaction for the acquiring company in an acquisition, though occasionally acquiring companies will go up on a deal announcement if it excites investors enough, as which happened with


(GME) - Get GameStop Corporation Report


Electronics Boutique

last year.

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At the time of publication, Cramer had no position in the stocks mentioned.

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