Giving the Fed a high degree of independence means all but:
A. the Fed governors will not be as tempted by political pressure.
B. it is less likely to expand the money supply simply to make it cheaper for the government to repay its debt.
C. The federal government will not have to borrow to finance its budget deficit.
D. technocrats-rather than politicians-are in charge, which tends to increase people's trust in the stability of the dollar.
Answer: C
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According to the law of demand, other things being equal
A) when the price a good goes up, then people buy more of that good. B) when the price a good goes up, then people buy less of that good. C) when people's income goes up, then they buy more of a good. D) when people's income goes up, then they buy less of a good.
?Marginal propensity to consume is equal to the change in ____ divided by the change in ____
a. consumption spending; total income b. saving; total income c. saving; disposable income d. consumption spending; disposable income
If 160 million people are employed, 15 million people are unemployed, and the population is 280 million people, the unemployment rate is
A) 57 percent. B) 62.5 percent. C) 8.6 percent. D) 9.4 percent. E) not possible to calculate without data on the labor force.
Which of the following measures did the Fed take during the financial crisis of 2008? a. The Fed lowered the discount rate and paid interest on reserves held at the Fed. b. The Fed increased the reserve requirement ratio
c. The Fed sold all government securities. d. The Fed decreased its spending. e. The Fed increased the discount rate.