The part of the Federal Reserve System (the Fed) that holds the reserve balances of depository institutions is
A. the Federal Open Market Committee.
B. the Federal Advisory Committee.
C. the Federal Reserve district banks.
D. the Board of Governors.
Answer: C
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Which of the following statements is true of the gains to trade?
A) The gains to trade expand as trading partners become more alike. B) The gains to trade shrink as trading partners become more alike. C) The trading nations can enjoy gains to trade even when none of these countries has a comparative advantage in the production of any good. D) The gains to trade are equal for all trading partners.
Which measure of inflation best reflects changing prices for the average consumer?
A. Headline inflation B. Core inflation C. Hyper inflation D. Nominal inflation
In order to understand how the economy works in the short run, we need to
a. study the classical model. b. study a model in which real and nominal variables interact. c. understand that "money is a veil.". d. understand that money is neutral in the short run.
The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n):
A. recessionary phase. B. expansionary. C. recovery phase. D. stationary phase.