Is the Federal Reserve insulated from political pressures in any way? Explain.
What will be an ideal response?
Yes. The Federal Reserve has a level of political independence because the governors are appointed by the president for 14-year terms. They hold office longer than any one president can hold office, they cannot be reappointed, and they are not elected. This independence allows the Fed to control the nation's money supply without undue political influence.
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By law, banks are required to
A) hold 100 percent of customer deposits as reserves. B) hold a fraction of demand deposits as reserves. C) hold a fraction of their reserves at the Federal Reserve bank. D) lend out no more than the amount of their required reserves.
If demand is inelastic, the absolute value of the price elasticity coefficient is greater than one
Indicate whether the statement is true or false
An individual demand curve can be derived from the ________ curve
A) price-consumption B) price-income C) income-substitution D) income-consumption E) Engel
The demand curve for the output of a perfectly competitive firm is
a. perfectly inelastic b. perfectly elastic c. unit elastic d. downward sloping e. nonlinear