In the United States, who determines monetary policy? What is the major tool used to determine monetary policy?
What will be an ideal response?
The Federal Reserve Bank's Federal Open Market Committee determines monetary policy. The committee is made up of the Board of Governors and 5 reserve bank presidents. Their main tool is buying and selling existing U.S. government securities in open markets.
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The demand for a good is less price elastic
A) if closer substitutes are available. B) if the good is a luxury rather than a necessity. C) if the share of the good in the average consumer's budget is smaller. D) in the long run than in the short run.
The interest rate charged on a risk-free loan exceeds the rate on a risky loan
a. True b. False
When we calculate GDP, imports are
A. Subtracted from exports and included in gross investment. B. Subtracted from total spending because they are part of another country's GDP. C. Added to exports because both represent purchases of final goods. D. Subtracted from exports to obtain gross exports.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the highest opportunity cost for brushes in terms of combs is
A. 0.10 comb per brush. B. 0.50 comb per brush. C. 23 combs per brush. D. 0.29 comb per brush.