Why might Congress benefit from the Fed being self-financed?
A) Self-financing increases Congressional control over the Fed.
B) Self-financing reduces the Fed's exposure to external pressures.
C) Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend.
D) Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.
C
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For which of the following will the law of one price hold best?
A) shirt B) butter C) gold D) milk
Unexpected inflation arbitrarily
A. "subsidizes" those who receive fixed money incomes. B. "taxes" those who receive fixed money incomes. C. "penalizes" those who borrow money. D. "benefits" those who save money.
The lag problem associated with monetary policy is due mostly to
a. the fact that business firms make investment plans far in advance. b. the political system of checks and balances that slows down the process of determining monetary policy. c. the time it takes for changes in government spending to affect the interest rate. d. All of the above are correct.
?A perfectly elastic demand curve is
a. a vertical straight line
b. a horizontal straight line
c. a downward-sloping straight line
d. an upward-sloping straight line
e. not a straight line