Why is the president of the New York Fed always a voting member of the FOMC?
New York is the financial capitol of the United States. All Fed purchases and sales of government securities are conducted through the New York Fed's trading desk. Because of the important role of the New York Fed in implementing open market operations, the NY Fed president always votes on open market policies.
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A mixed capitalist economy is one in which
a. decisions are based primarily on religion or custom b. all resources are publicly owned and economic planning is centralized c. all resources are privately owned and prices are used to coordinate economic activity d. resources are both publicly and privately owned and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity
When PAE < Y the economic response for inventories should be:
A. inventories will increase. B. inventories will decrease. C. there will be no change in inventories. D. inventories should decrease initially and then sharply increase.
Which statement is true?
A. The most important job of the Federal Reserve is to control our money supply. B. Our currency is issued by the United States Treasury. C. There is a reserve requirement of 12% on all checking accounts. D. None of the statements are true.
The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at one unit. The profit-maximizing quantity of labor is:
A. 10. B. 2/5. C. 1. D. None of the answers are correct.