The principal objective of the Federal Reserve System is to
A. circulate coins and paper Federal Reserve Notes.
B. subsidize the income of member banks.
C. help stabilize the economy through monetary policy.
D. make profits to remit to the Treasury Department.
Answer: C
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?Monopoly power can last only if there are legal barriers to entry for other firms.
Answer the following statement true (T) or false (F)
The largest source of tax receipts for the government is
A) personal taxes. B) contributions for social insurance. C) taxes on production and imports. D) corporate taxes.
Governments promote long-run inflation when they depend on ________ to finance their expenditures
A) issuing bonds B) taxation C) raising the national debt D) money creation E) selling off assets
Suppose the following information describes the economy:GDP2,000Consumption1,500Government spending300Net taxes400 Private saving equals ________; public saving equals ________; national saving equals ________.
A. 100; 100; 200 B. 200; 100; 300 C. 100; 200; 100 D. 200; 100; 500