Which of the following individuals would be most negatively affected by anticipated inflation?
A) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses
B) a full-time employee at a pizza parlor who makes more than the minimum wage
C) a retired railroad engineer who receives a fixed income payment every month
D) a union contractor whose pay is adjusted based on changes in the CPI
C
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When output is below the full employment level of real GDP, the Federal Reserve banks should ________.
A. sell bonds B. raise the federal funds rate C. raise the discount rate D. lower the reserve ratio
In the former Soviet Union, nearly all resources were owned by
A. the government. B. business firms. C. individuals. D. foreigners.
Who was the leader that introduced communism and central planning to the former Soviet Union?
a) Karl Marx b) Joseph Stalin c) Vladimir Lenin d) Friedrich Engels
Describe the functions of the Federal Reserve System.
What will be an ideal response?