Under ________ exchange rates, monetary policy is powerful in its effects on internal balance. This conclusion holds
A. fixed; only with perfect capital mobility.
B. floating; only with low capital mobility.
C. floating; with all degrees of capital mobility.
D. fixed; with all degrees of capital mobility.
Answer: C
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Although a corporation that is owned by its member banks, the Federal Reserve System
A. reports directly to the president in an annual report. B. is quite independent of them, and they receive almost none of the Fed’s profits. C. is administered by Congress and all its profits are distributed to the member banks. D. turns all its profits over to the state governments of each district bank.
The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression years 1930-1933. Explain this difference using the bond supply and demand analysis
What will be an ideal response?
The sale of U.S. currency and purchase of foreign currency by the Federal Reserve would shift the demand curve for U.S. dollars to the left
a. True b. False Indicate whether the statement is true or false
The ________ is an example of a regressive tax.
A. energy tax B. tariff C. sales tax D. individual income tax