Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) can fine tune the economy and realistically hope to keep the economy from experiencing recessions.
B) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions.
C) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.
D) does not try to eliminate recessions, but instead focuses on preventing inflation.
C
You might also like to view...
Refer to the table below. Julia's opportunity cost of making a cake is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 60 cakes B. 6 cakes C. 5/6 of a cake D. 6/5 of a cake
Of the following, which best explains why Thomas Malthus was incorrect in his prediction that population would outstrip food supplies?
A) Malthus failed to realize that that human population would increase considerably. B) Malthus failed to recognize that economic growth is accompanied by smaller family sizes. C) Malthus incorrectly believed that economic growth would reduce birthrates. D) Malthus incorrectly predicted that modernization would increase the demand for children.
If the inflation rate is lower than expected, real income is redistributed from borrowers to lenders
a. True b. False
For a firm operating in a perfectly competitive industry, total revenue, marginal revenue, and average revenue are all equal
a. True b. False Indicate whether the statement is true or false