Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) does not try to eliminate recessions, but instead focuses on preventing inflation.
B) can fine tune the economy and realistically hope to keep the economy from experiencing recessions.
C) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.
D) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions.
Answer: C
You might also like to view...
Regressive income taxes are
A) an important form of income redistribution. B) present when the average tax rate decreases as income decreases. C) present when the average tax rate decreases as income increases. D) Both answers A and B are correct.
Refer to the table below. What is the profit-maximizing quantity for Just Juice to produce at Plant 1?
Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi-plant firm with market power. The above table summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle) and market demand (price per bottle).
A) 350
B) 530
C) 500
D) 425
Who owns a commercial bank?
a. Its depositors b. Its stockholders c. Lenders d. Savers e. The Federal Reserve
Which of the following causes a movement upward along the aggregate demand curve?
A. a fall in wages B. an increase in the price level C. an increase in government spending D. an increase in the money supply