Members of the Federal Reserve Board of Governors are appointed for one fourteen-year term so that they:
A. Have time to learn how the Fed operates.
B. Are more likely to make politically acceptable decisions.
C. Make their decisions based on economic, rather than political, considerations.
D. Have enough time to travel to all 12 regional banks.
C. Make their decisions based on economic, rather than political, considerations.
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Best Ink and Ink Jets are two ink suppliers that are competing with each other. If Best Ink announces an upcoming price change next month, it may be signaling to Ink Jets its intent to engage in ________.
A) a Cournot oligopoly B) a Stackelberg oligopoly C) a Chamberlin oligopoly D) tacit collusion
The Table 10.2 below shows net cash flows for 3 mutually exclusive projects from which a company can choose. Each project requires an investment in the first year, then produces a positive net cash flow for each of the following four years. Assuming an interest rate of 5%, which project would the company choose? Does the best project have the highest total net cash flow? The shortest payback period?
What will be an ideal response?
Consider the production possibilities frontier in the figure shown. The opportunity cost of moving from point A to point B is:
A. 5 cars per cigar.
B. 10 cars per cigar.
C. 5 cigars per car.
D. 10 cigars per car.
The Federal Open Market Committee (FOMC) consists of: a. the Board of Governors and the Secretary of the Treasury
b. the presidents of the 12 Federal Reserve Banks. c. the Board of Governors and some of the Federal Reserve Bank presidents. d. the Comptroller of the Currency and seven Reserve Bank presidents. e. representatives from banks throughout the U.S.