The Federal Reserve ________
A) engages in stabilization policy by setting interest rates
B) engages in fiscal policy by setting interest rates
C) addresses financial crises by raising taxes
D) all of the above
E) none of the above
A
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Which of the following is true?
a. Markets determine what goods are going to be produced, but not the distribution of output among members of society. b. Markets determine the distribution of output among members of society, but not what goods are going to be produced. c. Markets determine both what goods are going to be produced and the distribution of output among members of society. d. Government can redistribute income without changing what will be produced in a society.
Which of the following does not shift the entire consumption function?
a. Net Wealth b. Price Level c. Interest Rates d. Producer Expectations