It is necessary for the Federal Reserve to regulate the money supply because
a. banks tend to act in a counter-cyclical manner with regard to the money supply.
b. banks are not profit-oriented, and tend to be unresponsive to the needs of business.
c. left to itself, the banking system will create a gyrating money supply that will be destabilizing.
d. left to itself, the banking system will not be able to increase or decrease the money supply.
c
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From the economic point of view, why will an avid downhill skier devote many hours to reading, comparing, and testing a new pair of ski boots but only a few hours to deciding who to vote for in the state senator race?
A) Ski boots are ultimately more important to society than state senators. B) He needs new ski boots; he does not need a new state senator. C) In his estimation, being highly informed about ski boots is a better use of his time compared to being highly informed about potential state senators. D) He is selfish.
Growth accounting is seen a useful way to estimate this inputs contribution to growth:
A. technology. B. physical capital. C. labor. D. land.
If the government of a country decides to cut the tax rates, there will be a(n): a. upward movement along the short-run Phillips curve. b. downward movement along the short-run Phillips curve. c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.
Adhering to a strict fixed exchange rate system means that
A. no country will experience inflation or recession. B. each nation improves control over its money supply. C. each nation loses some control of its monetary policy and its domestic economy. D. each nation improves control over its fiscal policy and aggregate demand.