The most important function of the Fed is to
A. provide a system for collecting and clearing checks.
B. support the federal government's deficit spending by buying government securities.
C. regulate the money supply.
D. collect taxes.
Answer: C
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The "rules of the game" under the gold standard can best be described as which of the following:
A) selling domestic assets in a deficit and buying assets in a surplus. B) slowing down the automatic adjustments processes inherent in the gold standard. C) selling domestic assets in order to accumulate gold. D) selling foreign assets in a deficit and buying foreign assets in a surplus. E) selling domestic assets in a surplus.
In a debate on the state of the economy Senator X pointed out that the unemployment rates for teenagers, blacks, and hispanics had increased over the last year, while Senator Y stated that the unemployment rate in the United States was at its lowest level in more than 30 years. In this example, aggregate data is being used by:
A. both senators. B. Senator X. C. neither senators. D. Senator Y.
All of the following are true regarding a sealed-bid second-price auction except which one?
A) Participants submit sealed bids. B) The participant with the highest bid wins. C) The winner of the auction pays what the second-highest participant bid. D) This kind of auction is common.
Which of the following would cause GDP to overstate the growth in economic well-being over the past 50 years?
A. Increase in leisure time B. Increase in the employment of married women C. Decrease in the employment of maids and housekeepers D. All of the choices are true