What is the role of the Federal Open Market Committee (FOMC)?
(A) It makes key decisions about interest rates and the growth of the United States money supply.
(B) It redraws the map of the 12 Federal Reserve Districts every ten years in response to economic changes.
(C) It collects information on each Federal Reserve District and reports on economic conditions to the Board of Governors.
(D) Composed of seven members appointed by the President, it oversees the Federal Reserve System.
Ans: (A) It makes key decisions about interest rates and the growth of the United States money supply.
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Suppose that in a PPF graph, wheat is on the vertical axis and jets are on the horizontal axis. Moving down along the PPF, the
A) number of jets increases and the opportunity cost of jets decreases. B) number of jets increases and the opportunity cost of jets increases. C) opportunity cost of jets and wheat both increase. D) amount of wheat increases and the opportunity cost of wheat increases. E) amount of wheat increases and opportunity cost of wheat decreases.
In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to $4. The total deadweight loss would be
A) $0. B) $10. C) $15. D) $20.
A sum of money received at a future date
A. is worth less than the same sum of money received today. B. is worth more than the same sum of money received today. C. has the same value as the same sum of money received today. D. is worth less than the same sum of money received yesterday.
Activists believe that monetary and fiscal policy will only work if it comes as a surprise to the public
a. True b. False Indicate whether the statement is true or false