The Federal Reserve System performs many functions but its most important one is:

Controlling the money supply
Acting as fiscal agent for the U.S. government
Issuing currency
Providing for check clearing and collection


Controlling the money supply

Economics

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If inflation turns out to be higher than was anticipated, debtors are helped because

A) the real present value of their payments increases. B) the real present value of their payments decreases. C) the nominal present value of their payments increases. D) the nominal present value of their payments decreases.

Economics

A firm has $200,000 to spend on either direct sales or advertising. Suppose further that if the $200,000 is spent on direct sales, it will bring in an accounting profit of $40,000. Instead, the (accounting) profit it could obtain from a $200,000 investment in advertising is $X. Compare the profitability of the two options if (a) X = 50,000, (b) X = 30,000, or (c) X = 40,000.

What will be an ideal response?

Economics

A college requesting applicants to submit their high school transcripts is an example of:

A. signaling. B. screening. C. statistical discrimination. D. building a reputation.

Economics

Explain the effect of Federal tax policy on the cost of health insurance

What will be an ideal response?

Economics