In the United States, major money policy decisions are made by the ______.
a. 12 banks that comprise the Fed
b. banks that have ownership of the Fed
c. president of the United States with approval from the Senate
d. Federal Reserve Board of Governors and the FOMC
d. Federal Reserve Board of Governors and the FOMC
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Which of the following statements is correct? I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand
A) I only B) II only C) Both I and II D) Neither I nor II
(Use the graph of the wheat market in Economic Insight 9.1, on p. 162 of the text.) S1 shows the supply curve for wheat in the local market. S2 shows the supply curve for wheat in more distant markets in the early 1800s. S3 shows the supply curve for wheat in more distant markets in the mid-1800s. Given the information provided, we can conclude that
a. the price that wheat producers received per bushel rose from P2F to P2C during the antebellum period. b. the price paid by wheat buyers in distant markets fell from P2C per bushel to P3C per bushel during the antebellum period. c. in the mid-1800s, wheat buyers in distant markets paid P3F per bushel and wheat producers received P3C per bushel. d. wheat producers received a price of P3C for wheat in the early 1800s.
In the macroeconomy, demand-side shifts change:
A. only the price level in the long run, while output eventually returns to its long-run potential level. B. only the output level in the long run, while prices eventually return to their long-run potential levels. C. aggregate demand only, which eventually shifts back in the long run. D. aggregate demand only, which is why the price level remains unaffected in the long run.
In 2012, the median income of U.S. families was about $86,000
a. True b. False Indicate whether the statement is true or false