In practice, the Board of Governors and the chairperson of the Federal Reserve have the real control over monetary policy.
Answer the following statement true (T) or false (F)
True
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If you buy a DVD player produced in Japan, a
A) good was exported by Japan and imported by the United States. B) good was imported by Japan and by the United States. C) service was imported by Japan and exported by the United States. D) service was exported by Japan and imported by the United States. E) good was exported by Japan and by the United States.
A rightward shift of a supply curve
a. represents a decrease in supply b. might be caused by an increase in demand c. might be caused by a price ceiling d. would cause an excess quantity supplied at the previous equilibrium price e. might be caused by a decrease in demand
A perfect competition market has which of the following?
a. Only productive efficiency b. Only allocative efficiency c. Neither allocative or productive efficiency d. Has both allocative and productive efficiency
The economy is in a recessionary gap. There is no crowding out and government has correctly estimated that to bring the economy into long-run equilibrium it should raise government purchases by $123 billion. If government purchases are raised by $123 billion, does it follow that the economy will be moved into long-run equilibrium?
A) Yes, because all the necessary conditions for effective fiscal policy are present. B) No, because the economy may be self-regulating, and by the time expansionary fiscal policy is effective, the AD curve may intersect the SRAS curve at an inflationary-gap level of Real GDP. C) Yes, because of the validity of the balanced budget theorem. D) No, because of inflexible wages and the fact that the SRAS curve is upward-sloping. E) none of the above