U.S. monetary policy relies on the:
A. Federal Reserve System's control over taxes.
B. Federal Reserve System's control over the money supply.
C. President's control over the printing of money.
D. President's control over interest rates.
B. Federal Reserve System's control over the money supply.
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The multiplier increases as the MPC increases
Indicate whether the statement is true or false
Which of the following is not a basis for trade between two nations?
a. different skill levels of the labor forces b. one nation's absolute advantage c. a difference in tastes between countries d. economies of scale e. different capital stocks
Which of the following helps to explain why the inflation fallacy is a fallacy?
a. Increases in the price level can be created by increases in money demand. b. Nominal incomes tend to rise at the same time that the price level is rising. c. As the price level rises, the value of a dollar falls. d. Inflation only changes nominal variables.
If the number of employed went up and the number of unemployed went down
A. the unemployment rate would go down. B. the unemployment rate would go up. C. the unemployment rate would stay the same. D. the unemployment rate might go up, go down, or stay the same.