Critics of the Federal Reserve maintain that, to correct the credibility problem of monetary policy, the Fed should:
a. tighten monetary policy.
b. be required to maintain a growth rate of the money supply that is fixed by law.
c. give more power to the Federal Open Market Committee.
d. ignore public opinion and establish more discretionary power over monetary policy.
e. merge with the U.S. Treasury and be dissolved as an independent agency.
b
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Federal government expenditures account for more than two-thirds of the money spent in the public sector
a. True b. False
A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A) The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. B) The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. D) The monopsonist will have to raise the wage rate for current and additional employees.
Which of the following is an impact of the restriction on immigration on the domestic firms?
a. The domestic firms would produce more and reap greater profits. b. The domestic firms would hire more unskilled laborers at lower wages. c. The domestic firms would charge low prices for their products. d. The domestic firms would have to pay higher wages and make less profit. e. The domestic firms would make above normal profits in the long run.
In the indifference curve-budget line model of labor supply, the vertical intercept of the budget line represents
a. the worker's nonlabor income. b. the wage rate paid to the worker. c. the number of leisure hours enjoyed by the worker. d. the number of hours of labor that the worker supplies.