Which of the following is a permanent member of the Federal Open Market Committee?

A) President of the New York Federal Reserve Bank
B) President of the Washington, D.C. Federal Reserve Bank
C) Comptroller of the Currency
D) Secretary of the Treasury


A

Economics

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Blood tests administered to applicants for medical insurance are an example of an attempt by insurance companies to deal with the problem of

A) moral hazard. B) the drug abuse problems currently plaguing the country. C) adverse selection. D) failure of policyholders to keep paying their premiums.

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In Figure 3-4 above, an equilibrium income of 2000 occurs when planned autonomous spending is

A) 750. B) 800. C) 1250. D) 250.

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In the IS model, assuming that the real interest rate does not change, an increase in ________ leads to an increase in equilibrium saving by households

A) autonomous consumption B) taxes C) financial frictions D) all of the above E) none of the above

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The demand for the product of a monopolistically competitive firm is highly elastic when

A) firms collude. B) there are fewer firms in the industry. C) there is a lot of product differentiation. D) there are a lot of close substitutes.

Economics