The U.S. central bank is the government institution that:
A) monitors financial institutions, controls the money supply, and invests in foreign assets.
B) monitors financial institutions, controls the money supply, and sets certain key interest rates.
C) monitors financial institutions, controls the money supply, sets certain key interest rates, and decides on political targets.
D) controls the money supply and invests in foreign assets.
B
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Recall the Application. The equilibrium price of pecans increased because the demand curve shifted
A) up and to the right. B) up and to the left. C) down and to the right. D) down and to the left.
Suppose the current equilibrium wage rate for housekeepers is $8.60 per hour. An increase in the minimum wage to $7.50 per hour leads to
A) a surplus of housekeepers. B) a shortage of housekeepers. C) no change in the market for housekeepers. D) an increase in the quantity of housekeepers supplied. E) unemployment of housekeepers.
If the MPC = .75, the spending multiplier is:
a. 4. b. 5. c. 1.33. d. 1.20. e. .25.
One way for the federal government to maintain milk price supports (price floor) is to purchase the surplus milk, that results when the support price is higher than the market equilibrium price. Thus consumers pay both an artificially high price for milk, and as taxpayers, they also pay for the surplus milk
Indicate whether the statement is true or false