The Federal reserve prefers to use open market operations because
a. it allows for small changes.
b. its effects are well understood.
c. it is easy to conduct.
d. both a and b.
e. all of the above.
E
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Which of the following statements is (are) correct? Over the past 20 years, the Federal Reserve
a. has only targeted monetary aggregates. b. has varied between an emphasis on interest rate control and targeting of monetary aggregates. c. has only emphasized control of the interest rate. d. None of the above
The Gallatin Plan (1808)
(a) was a plan by the U.S. Senate for a comprehensive system of internal land and water transport in the eastern part of the country to be built by the federal government. (b) was promoted on the basis that only the federal government could command sufficient resources to build a transportation system. (c) was partially implemented but not completed by the federal government because of concerns about the constitutionality of such federal action. (d) was characterized by all of the above.
Technology can enable producers to economize on:
a. labor b. capital c. land d. any of the above.
Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True b. False Indicate whether the statement is true or false