Figure 14-2
If the Fed anticipates that the conditions illustrated by AD1 and SRAS in will be present in the near future, it should
a.
shift to a more restrictive policy.
b.
shift to a more expansionary policy.
c.
request that Congress raise tax rates.
d.
refuse to buy any more U.S. securities.
b
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Answer the following statement true (T) or false (F)
Which of the following is an implicit cost of going to college?
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The Federal Open Market Committee consists of the seven members of the ________, the president of the Federal Reserve Bank of New York, and ________
A) Federal Reserve's Board of Governors; four members of the Council of Economic Advisors B) Federal Reserve's Board of Governors; four presidents from the other 11 Federal Reserve banks C) Council of Economic Advisors; four presidents from the 11 Federal Reserve banks D) Council of Economic Advisors; four members of the U.S. Banking Committee