Briefly describe the Federal Reserve System, how it is governed, and its roles in the economy
What will be an ideal response?
The Federal Reserve, or Fed, is the U.S. central bank. The Fed consists of twelve regional Federal Reserve Banks scattered across the United States. These banks are overseen by the Board of Governors, a seven member board located in Washington D.C., whose members are appointed by the President of the United States and confirmed by the Senate. The Federal Open Market Committee, or FOMC, is the group within the Fed that sets the nation's monetary policy. The voting members of the FOMC consist of the chair and other six members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four presidents of the other regional Federal Reserve Banks, on a yearly rotating basis. The Fed's primarily role in the economy is to set and conduct the nation's monetary policy. The Fed also provides banking services to banks and helps regulate the nation's financial institutions and markets.
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If a perfectly competitive industry is taken over by a single firm that operates as a single-price monopoly, the price will ________ and the quantity will ________
A) fall; decrease B) fall; increase C) rise; decrease D) rise; increase E) not change; decrease
Which of the following pairs of policies shift aggregate demand in the same direction? a. A tax increase and an increase in the money supply
b. A transfer payment decrease and an increase in the money supply. c. A reduction in government purchases and decline in the money supply. d. An increase in government purchases and a decline in the money supply.
Which of the following describes the relationship between the marginal product of labor and marginal costs?
a. Marginal product and marginal costs rise and fall in sync. b. When marginal product is rising, marginal costs are falling. c. Marginal costs must be known to figure marginal product. d. Marginal product equals change in marginal cost divided by output.
Give a brief description of the law of diminishing marginal utility and use it to explain the downward slope of the demand curve
Please provide the best answer for the statement.