Answer the question based on the information given in the table below that shows the items and figures taken from a consolidated balance sheet of the twelve Federal Reserve Banks. All figures are in billions of dollars.
In the balance sheet above for the Federal Reserve, the assets would be items 5 and:
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 4 and 6
D. 4 and 6
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The Federal Reserve is best suited to alleviating
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) The Federal Reserve is equally suited to alleviate all three types of unemployment.
Monetary policy has one clear advantage over fiscal policy by virtue of its very short
A) data lag. B) data and recognition lags. C) legislative and transmissions lags. D) effectiveness lag.
In general, educating workers:
A. does not make them more productive. B. increases overall economic growth. C. contributes little to other capabilities. D. forces them to leave their native country.
Which of the following is true of long-run consumption functions?
a. Autonomous consumption is equal to zero in the long-run. b. The long run consumption functions are steeper than short run consumption functions. c. The marginal propensity to consume for the long run consumption function is almost equal to zero. d. The autonomous consumption is negative in long run consumption functions. e. The long run consumption function is represented by a straight line parallel to the horizontal axis.