The Federal Reserve plays a larger role than Congress and the president in stabilizing the economy because
A) the Federal Reserve can more quickly change monetary policy than the president and the Congress can change fiscal policy.
B) changes in interest rates have their full effect on the economy in a short period of time, whereas changes in government spending and taxes have their full effect over a long period of time.
C) the Federal Reserve can immediately recognize when real GDP is below or above potential GDP.
D) changes in interest rates have a considerably larger effect on the economy than changes in government purchases or taxes.
A
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The International Space Station is a joint project of the United States, Russia, Japan, Canada and the European Union. This suggests that _____
a. if the space station is a public good then the optimal size of the sharing group is larger than one country b. each country would have been unable to raise the money to pay for the space station on their own c. there are significant negative externalities involved that should be spread over more individuals d. Australians do not value space exploration
Refer to the above figure. Saving occurs at
A) only at point A. B) to the left of point B. C) only at point B. D) to the right of point B.
Economies of scale exist whenever long-run average costs:
a. Increase as output is increased b. Remain constant as output is increased c. Decrease as output is increased d. Decline and then rise as output is increased e. None of the above
Over long periods of time, M2 velocity has been relatively constant
a. True b. False Indicate whether the statement is true or false