Members of the Federal Reserve Board of Governors are appointed for one 14-year term so that they
A. Make their decisions based on economic, rather than political, considerations.
B. Have enough time to travel to all 12 regional banks.
C. Have time to learn how the Fed operates.
D. Are more likely to make politically acceptable decisions.
Answer: A
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A downside to foreign aid is that
a. developing countries have not necessarily increased their ability to become self-supporting at higher standards of living b. many recipient countries are doing less of what they had done well c. the agricultural sectors of recipient countries have suffered d. government officials have been insulated from their own incompetence e. All of the answers are correct
Long-run diseconomies of scale exist over the range of output for which the long-run average total cost curve
a. rises. b. remains constant. c. falls. d. does not exist.
The economic burden of an excise tax
A. can usually be partially shifted from buyers onto sellers. B. equals the revenue from the tax. C. is less than the burden of an income tax that would raise the same revenue. D. is shared equally by buyers and sellers.
Which tool results in an immediate and major impact on the money supply, but is rarely used by the Fed because it affects the money supply in such a significant way?
a. open market operations b. reserve requirement alterations c. reserve interest rate changes d. discount rate changes