When the Federal Reserve System was established in 1913, its main policy goal was
A) encouraging strong economic growth.
B) promoting price stability.
C) preventing bank panics.
D) keeping employment high.
Answer: C
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Explain how income and substitution effects alter the saving behavior of households
What will be an ideal response?
In which of the following areas are partnerships common?
a. Contract jobs won through bidding b. A large multinational corporation c. Small firms producing semi-finished goods d. Professional group practices
Part of the controversy about Fed independence include(s)
a. the goal to bring all macroeconomic policy under the direct control of the president. b. the appropriate role of the Fed in policy making. c. how to make the Fed more powerful than other central banks. d. All of the above are correct.
The foreign purchases effect suggests that a decrease in the American price level relative to those in other countries will _____ American exports and _____ American imports.
Fill in the blank(s) with the appropriate word(s).