What is the FOMC? Who are the members of the FOMC? What policy does the FOMC decide?
What will be an ideal response?
The FOMC is the Federal Open Market Committee. All seven members of the Board of Governors and the 12 Federal Reserve Bank presidents attend and discuss the economy at the FOMC meeting. The voting members of the FOMC, however, are only the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four presidents of the remaining Federal Reserve Banks who serve on an annual rotating basis. The FOMC meets approximately every six weeks to review the state of the economy and decide the monetary policy actions to be carried out by the Federal Reserve Bank of New York.
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Corporate income is taxed twice—once in the form of corporate income tax and the second time when the owner must pay income tax on dividends. What are the effects of this double taxation?
What will be an ideal response?
If the Treasury prints currency to finance an expenditure, the impact on the money supply is similar to when the Treasury borrows from the
A) banking system when it is fully loaned-up. B) banking system when it has excess reserves. C) non-bank public. D) Federal Reserve.
The idea that policy actions have no real effects in the short run if they are anticipated and no real effects in the long run is called the
A. adaptive proposition. B. money illusion proposition. C. Keynesian proposition. D. policy irrelevance proposition.
What does it mean to have an absolute advantage in the production of two goods?
What will be an ideal response?