Is the Federal Reserve an independent institution?
What will be an ideal response?
The Federal Reserve is generally considered to be independent of control by the U.S. Congress and the U.S. President. Although it was created by Congress and can be eliminated by Congress, any change in its role and mission will require extensive legislative action, which is unlikely to occur. The President also has no direct control over the operation of the Federal Reserve, other than lobbying influence and the power to appoint members of the Board of Governors. These members, however, are appointed to long terms -- fourteen years which gives them protection from immediate political pressures. The long terms also reduce the possibility for any one President from packing the Board.
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Which of the following will cause an increase in aggregate demand within the AS/AD model?
a. a decrease in prices b. a decrease in the real interest rate c. a decrease in consumer optimism as measured by the consumer sentiment index d. a decrease in foreign incomes abroad
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice.
Suppose a timing element is added to the game, and that Jordan buys a ticket first. Then, after seeing Jordon's choice, Lee buys a ticket. What will be the equilibrium outcome?
A. Jordan will buy a ticket to the documentary and Lee will buy a ticket to the comedy. B. Jordan will buy a ticket to the comedy and Lee will buy a ticket to the documentary. C. Both Jordan and Lee will buy a ticket to the documentary D. Both Jordan and Lee will buy a ticket to the comedy.
Sonya lives in a country where most companies are free to produce and sell whatever they want. However, the government regulates prices for utilities and healthcare, and restricts unfair sales practices and manufacturing processes that harm the environment. Which type of economy does Sonya’s country have?
a. traditional b. command c. market d. mixed
What provides an ethical compass for the organization?
Mission Vison Values Goals