The Federal Reserve is the U.S. government's bank. Identify the functions the Fed performs in this role.
What will be an ideal response?
As the bank for the U.S. government, the Fed issues new currency and destroys old currency. They maintain the U.S. Treasury's bank account, paying checks and processing electronic payments. Finally, they manage the U.S. Treasury's borrowings; they issue, transfer and redeem Treasury bills, notes and bonds.
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A single-price monopoly charges the same price
A) even if the demand curve shifts. B) even if its cost curves shift. C) to all customers for each unit of output they buy. D) at all times, and that price equals the firm's marginal revenue.
A person is more likely to increase labor supply in response to an increase in the real wage, the ________ is the income effect and the ________ is the substitution effect
A) larger; larger B) larger; smaller C) smaller; larger D) smaller; smaller
Borrowing to finance the increases in government expenditures
A) reduces current private investment expenditures. B) increases interest rates. C) reduces growth in the nation's private capital stock. D) all of the above.
The short-run aggregate supply curve...
What will be an ideal response?