Which of the following functions does the Federal Reserve System not perform?
A. Lending money to banks and thrifts.
B. Providing banking services to the general public.
C. Providing financial services to the Federal government.
D. Issuing the paper currency in the economy.
Answer: B
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The fact that it takes time for government to take action, even after a problem has been diagnosed, is one reason for the occurrence of
A) inside lags. B) the multiplier effect. C) outside lags. D) crowding out.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.
Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.
Figure 23.4Refer to Figure 23.4. If income is Y2
A. the society's savings is negative along C1. B. the society's saving is negative along C1, C2, and C3. C. the society's saving is positive along C2 and C3. D. the society's consumption is equal along C2 and C3.
Which of the following macroeconomic variables is procyclical and coincident with the business cycle?
A. Unemployment B. Residential investment C. Nominal interest rates D. Industrial production