The Fed
A) distributes Federal Reserve notes, which are paper currency.
B) is responsible for conducting U.S. fiscal policy.
C) has 15 Federal Reserve banks and governing boards in New York and Chicago.
D) is responsible for minting coins.
A
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The economy suffered a mild recession in 2001. Despite the recession, home sales and durable goods sales remained high. Which of the following is a plausible explanation?
A) The Fed caused a reduction in the federal funds rate to its lowest level in 40 years. B) Home building and consumer durable purchases are always high during a recession. C) Rising inflation encouraged many to invest in the real estate market. D) The Fed's pursuit of contractionary policy stimulated these markets.
What factors determine the demand for money in the Baumol-Tobin analysis of transactions demand for money? How does a change in each factor affect the quantity of money demanded?
What will be an ideal response?
When households and businesses interact in product markets goods and services are
a. not exchanged b. flowing toward businesses c. flowing toward households d. not used at all e. flowing to both businesses and households
In discussing market failure, what term do economists use to describe an economy that has produced too much?
a. ultraspecialization b. high efficiency c. distribution of income d. overallocation