In practice, money supply and short-term interest rates are determined by the
a. Treasury and Commerce departments.
b. Federal Open Market Committee.
c. Board of Governors.
d. House and Senate.
B
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There are ________ Federal Reserve Banks located in different parts of the United States
A) 10 B) 12 C) 15 D) 50
Refer to Figure 18-5. The middle 20 percent of households
A) earn 20 percent of the society's total income. B) earn 36 percent of the society's total income. C) earn 48 percent of the society's total income. D) earn 50 percent of the society's total income.
Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; decrease B) lower; have an ambiguous effect on C) have an ambiguous effect on; decrease D) raise; decrease
The time that elapses between the implementation of a policy and its intended result is referred to as
A) the action time lag. B) the recognition time lag. C) the effect time lag. D) the data lag.