Why is the Chair of the Fed Reserve considered by many to be the most powerful person in the economic world?
What will be an ideal response?
People in financial markets around the world dote on the Fed chairman’s remarks with high intensity. The reason for all the attention is that, in the view of many economists, the Federal Reserve’s decisions on interest rates are the single most important influence on aggregate demand—and hence on economic growth, unemployment, and inflation.
You might also like to view...
Regulation Q was repealed in the __________ by the __________
A) early 1970s; Garn-St. Germain Act B) late 1970s; Depository Institutions Deregulation and Monetary Control Act C) late 1980s; Reigle-Neil Act D) early 1980s; Depository Institutions Deregulation and Monetary Control Act
The recent increase in popularity of professional basketball has resulted in
a. a decrease in the price of tickets to basketball games b. an increase in the price of professional basketball tickets c. increased competition among pro basketball teams d. a rise in the price of college basketball tickets e. the bankruptcy of some pro basketball teams
Which calculation gives the firm’s profit margin?
a. Average profit = price × average cost b. Average profit = price ÷ average cost c. Average profit = price + average cost d. Average profit = price – average cost
In a competitive market with identical firms,
a. an increase in demand in the short run will result in a new price above the minimum of average total cost, allowing firms to earn a positive economic profit in both the short run and the long run. b. firms cannot earn positive economic profit in either the short run or long run. c. firms can earn positive economic profit in the long run if the long-run market supply curve is upward sloping. d. free entry and exit into the market requires that firms earn zero economic profit in the long run even though they may be able to earn positive economic profit in the short run.