The Federal Reserve can tightly control
a. cash in the hands of the public
b. cash in the hands of the public and demand deposits
c. demand deposits
d. funds in savings accounts and checking accounts
e. borrowing by the government
B
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Quantitative easing is likely to lead to a(n) ________
A) increase in unemployment rate B) decrease in the price level C) increase in the federal funds rate D) decrease in the federal funds rate
Because incentive contracts result in more risk placed on the part of agents
a. the average level of compensation typically falls b. the average level of compensation typically rises c. compensation is unaffected d. employers want employees to insure against wild compensation swings
The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference
a. in part because of the use of stabilization policy. b. because of increases in U.S. population due to the "baby boom." c. in part because of the globalization of the economy. d. in part because of the use of competition policy.
Considering the three branches that make up the Federal Reserve System, identify the corresponding branches that make up the Euro system. Be sure to state which part of the Euro system corresponds to which part of the Federal Reserve System.
What will be an ideal response?