An economy wants to increase its current level of investment, it must:
A. sacrifice future consumption.
B. print more money.
C. offer more stocks and bonds to financial investors.
D. sacrifice current consumption.
Answer: D
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The Board of Governors of the Federal Reserve System does NOT
A) consist of seven members with fourteen-year terms. B) include the presidents of the twelve Federal Reserve Banks. C) utilize a system of rotations so that a position comes open every two years. D) consist of members whose appointments have been approved by the Senate.
The civilian labor force includes only the employed
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. The fraction of their total disposable income that households spend on consumption is called the marginal propensity to consume. b. As the real interest rate falls, additional projects with lower expected rates of return become profitable for firms, and the demand for investment curve shifts right. c. Firms with excess inventories of finished goods have an increased incentive to invest in new capital to put those inventories to productive use. d. None of the above is true.
One of the Fed's functions is to be the government's banker. This function means that the
A) Fed holds bank reserves B) Fed extends loans to the government whenever it spends more than it collects in tax revenues. C) government's checking account is at the Fed. D) all of the above