A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to:
A. Reduce inflation in the economy
B. Raise interest rates
C. Ease monetary policy
D. Tighten monetary policy
C. Ease monetary policy
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Which of the following does not serve on the Governing Council of the European Central Bank?
A) governors of the national central banks B) members of the executive board C) finance ministers of each country D) chair of the executive board
The CPI includes the prices of
a. goods and services purchased by American consumers b. goods and services purchased by all consumers (both foreign and domestic) c. goods and services purchased by the government d. investment goods purchased by businesses e. exports purchased by foreign buyers
The problem that arises when one person performs a task on behalf of another person is called the lemons problem
a. True b. False Indicate whether the statement is true or false
Suppose Congress increases income taxes. This is an example of
A) expansionary fiscal policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) contractionary monetary policy.