The U.S. Federal Reserve
A) has complete independence from the U.S. government.
B) acts within the boundaries established by Congress and the president, but has flexibility in meeting the goals of monetary policy.
C) is a government agency run by the Treasury Department and under the strict control of Congress.
D) is run by elected officials but is only subject to oversight by the U.S. president.
B
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A single-price monopoly's demand curve lies
A) below its marginal revenue curve. B) on top of its marginal revenue curve. C) above its marginal revenue curve. D) on top of its total revenue curve.
Which of the following statements is incorrect? a. Advertising can lower the costs to consumers of acquiring information
b. Advertising tends to increase competition in imperfectly competitive industries. c. Even though advertising increases total production costs, it may indeed provide a useful service to consumers. d. Advertising is only useful as a way to manipulate consumer tastes.
In an economy, the value of inventories fell by $50 billion from year 1 to year 2. In calculating total investment for year 2, national income accountants would increase it by $50 billion.
Answer the following statement true (T) or false (F)
Answer the following statement(s) true (T) or false (F)
1. The consumer price index (CPI) tracks changes in price at the wholesale level. 2. Change in prices is an important economic indicator because it is a measurement of consumer's purchasing power. 3. Cyclical unemployment measures those out of work during the off-season, such as those employed in agriculture and snow-, beach-, or holiday-related industries. 4. Higher productivity results in higher costs and higher prices, resulting in lower income and lower profitability. 5. A recession is a decline in the gross national product (GNP) over two or more consecutive quarters of the year.