Explain why it is correct to say the Federal Reserve functions as the government's bank but it is incorrect to say it controls the government's budget.
What will be an ideal response?
In its role as the government's bank, the Federal Reserve System (Fed) assists in the finances of the government and controls the availability of money and credit. The actual budget of the government is determined through fiscal policy where the Treasury administers the budget that is determined by Congress and the President. The Fed acts as the Treasury's bank.
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In the above figure, if the real wage is $20 per hour, a labor
A) shortage will occur and the real wage will rise. B) shortage will occur and the real wage will fall. C) surplus will occur and the real wage will rise. D) surplus will occur and the real wage will fall.
In game theory, a prisoner’s dilemma
A. never has a dominant strategy. B. is equivalent to a Nash equilibrium. C. always has the best result for the players when game is played repeatedly. D. is a game that has a preferred outcome for the players that is not an equilibrium.
The government is pursuing an expansionary fiscal policy if it
What will be an ideal response?
Compare and contrast the burden of internally financed debt to externally financed debt.
What will be an ideal response?