Which of the institutions has influence over the United States Federal Reserve (the Fed)?
A) The United States Senate
B) The Federal Reserve Board of Governors
C) The President of the United States
D) All of the above
Ans: D) All of the above
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Refer to the scenario above. The best approach to play this game is to use:
A) a dominant strategy. B) backward induction to come to a decision. C) a credible commitment to influence the payoffs of the game. D) a mixed strategy.
A rise in the money supply __________ the natural rate of interest
A) lowers B) raises C) has no effect on D) has an uncertain effect on
An increase in the cost of acquiring human capital will shift the labor supply curve to the left; eventually, this will tend to decrease the equilibrium wage rate
a. True b. False
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.