Describe the relationship between the Federal Reserve and the legislative and executive branches of the U.S. government
What will be an ideal response?
Although the Fed operates with independence from the U.S. Treasury, it is a creation of Congress and the chairperson of the Board of Governors is required to report to Congress on a regular basis. In practice, the Fed takes its actions first and later reports those actions to Congress. The chairperson of the Fed often will meet with members of the executive branch to discuss economic affairs. Presidents and members of Congress can bring political pressures on the Board of Governors of the Fed but 14-year terms provide some insulation from external pressures.
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If a subsidy is provided to produce good X, this will shift the
A. demand curve for X to the right. B. supply curve for X to the left. C. demand curve for X to the left. D. supply curve for X to the right.
The following table is for a purely competitive market for resources.Number of WorkersTotal ProductProduct Price00$311632263334344035443At a wage rate of $23 per worker, the firm will choose to employ
A. 2 workers. B. 3 workers. C. 4 workers. D. 5 workers.
We should expect to see home construction activity decrease when interest rates increase
a. True b. False Indicate whether the statement is true or false
When a country allows trade and becomes an importer of steel,
a. the losses of the domestic producers of steel exceed the gains of the domestic consumers of steel. b. the losses of the domestic consumers of steel exceed the gains of the domestic producers of steel. c. the gains of the domestic producers of steel exceed the losses of the domestic consumers of steel. d. the gains of the domestic consumers of steel exceed the losses of the domestic producers of steel.