What is the main purpose of the Federal Open Market Committee (FOMC)?
What will be an ideal response?
This committee sets monetary policy with regard to the purchase and sale of government securities. This buying and selling of government securities is a major tool used to influence interest and regulating the supply of money in the economy.
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Designers of the Federal Reserve System were concerned that the Fed might form policy favorable to one part of the country or to a particular party. What are some ways that the organization of the Fed reflects such concerns?
The diagram to the right shows a hypothetical demand curve for apples. The slope of this curve is _____
Fill in the blank(s) with the appropriate word(s)
If the GDP price index is 125 and nominal GDP is $130 billion, then real GDP equals ________ billion
A) $104.00 B) $162.50 C) $96 D) $1.04 E) $9.6
Which of the following statements is FALSE?
A) A good with a vertical demand curve has a perfectly inelastic demand. B) A good with a straight line, downward sloping demand curve has a demand whose elasticity is constant. C) A good with a horizontal demand curve has a perfectly elastic demand. D) All of the above statements are false.