Which of the following is responsible for buying and selling government securities to influence reserves in the banking system?
A. Twelve Federal Reserve banks.
B. The Board of Governors of the Federal Reserve.
C. The Federal Open Market Committee.
D. The executive branch of government.
Answer: C
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, the price for juice
A) stays the same. B) increases. C) decreases D) might change, but there is not enough information to determine.
Microeconomics involves the analysis of smaller, less developed economies while macroeconomics is concerned with the analysis of larger developed economies
a. True b. False
In a market economy, the real, or inflation-adjusted, price of a resource measures its
a. contribution to revenue. b. relative scarcity. c. productivity. d. contribution to efficiency.
When the economy is producing its potential output, an increase in government spending must necessarily reduce some component of private spending. This phenomenon is called:
A. fiscal policy. B. crowding out. C. the multiplier effect. D. entitlement spending.