Which statement is true?
A. The Federal Reserve has an excellent record as a "lender of last resort."
B. There is little debate about whether or not the Federal Reserve Board should be independent.
C. The power of the Federal Reserve is centered largely in its Board of Governors.
D. The stockholders in the Federal Reserve receive large profits.
C. The power of the Federal Reserve is centered largely in its Board of Governors.
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Constructing the CPI involves which of the following stages? i. conducting the monthly price survey ii. converting the CPI to an international index iii. selecting CPI market basket
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Which of the following would cause an increase in quantity of wheat supplied?
A. The price farmers receive for their wheat rises B. The price firms pay for liability insurance falls C. New, better technology for farming is introduced D. The price of fertilizer farmers use in their fields falls
Suppose Sam and Kevin can produce pens and pencils as shown in the table below. PensPencilsSam12 hours8 hoursKevin4 hours6 hours(a) Who has a comparative advantage in producing pens? Who has a comparative advantage in producing pencils?(b) Suppose Sam and Kevin have to each give Flip, a common friend, 10 pens and 10 pencils. Is there a trade that will make both of them better off? If a trade that would make both of them better off exists, describe such a trade. If there is no such trade that would make both of them better off, explain why.
What will be an ideal response?
Assume the reserve requirement is 10 percent, demand deposits are $200 million, and total reserves are $18 million. If the reserve requirement is increased to 14 percent, the banking system will have
A. An increase in the money multiplier. B. Excess reserves equal to $18 million. C. A deficiency of reserves equal to $10 million. D. Excess reserves equal to $10 million.