In what ways do the regional Federal Reserve Banks influence monetary policy?
What will be an ideal response?
The regional banks influence monetary policy primarily through their participation in the FOMC meetings. While the regional bank presidents make up 5 votes (including the President of the New York bank who is a permanent member) all regional bank presidents participate in the meeting. The regional banks in the past set the discount rate for their regions, but as the text discussed, the discount rate is now set above the FOMC target rate, so once the FOMC has done its job, the discount rate is really determined.
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The median voter theorem is more likely to hold true in elections with a large number of candidates
Indicate whether the statement is true or false
For the past year, Teddy has had a part-time job at which he is willing to work 10 hours each week. During Teddy's annual review, his boss grants him an 8 percent increase in his wage
As a result of the wage increase, Teddy is now willing to work 15 hours each week. Teddy's opportunity cost of ________ has risen and because for Teddy the substitution effect of the wage hike is ________ than the income effect. A) work; greater B) work; less C) leisure; greater D) leisure; less
Which of the following is a reason for economies of scale?
A) Fixed costs are spread out as volume increases. B) The law of diminishing returns does not take effect. C) Input productivity increases as a result of greater specialization. D) There is greater savings in transportation costs.
Average fixed cost:
a. remains unchanged as output expands b. is defined as the change in total cost divided by the change in output. c. always increases as output increases. d. always decreases as output expands.