Describe the relationship between the Federal Reserve and the legislative and executive branches of the U.S. government
What will be an ideal response?
Although the Fed operates with independence from the U.S. Treasury, it is a creation of Congress and the chairperson of the Board of Governors is required to report to Congress on a regular basis. In practice, the Fed takes its actions first and later reports those actions to Congress. The chairperson of the Fed often will meet with members of the executive branch to discuss economic affairs. Presidents and members of Congress can bring political pressures on the Board of Governors of the Fed but 14-year terms provide some insulation from external pressures.
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With tied aid
(a) MNC investment depends on tax concessions. (b) aid recipients must use the aid to purchase goods and services from the donor. (c) aid recipients must follow World Bank/IMF conditionality. (d) all of the above.
Consider the demand function Qd = 150 - 2P. The effects of other determinants of Qd is reflected in
A) the intercept of the function. B) the slope of the function. C) neither the slope nor the intercept of the function. D) in both the slope and the intercept of the function.