The Federal Reserve System
a. was created by and is owned by the government
b. pursues independent fiscal policy at the behest of Congress
c. monitors prices but does not have the authority to act to curb inflation when it emerges
d. pursues an independent monetary policy that can conflict with the government's fiscal policy
e. only acts to lower taxes and increase spending when there are recessionary tendencies in the economy
D
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Ricardian equivalence is the proposition that
A) government expenditure should only be financed by taxes. B) it does not matter whether government expenditure is financed by creating new money or issuing debt. C) government expenditure should only be financed by issuing new debt. D) it does not matter whether government expenditure is financed by taxes or debt.
The international unit of accounting used by the IMF is the
A) euro. B) special financial right. C) special drawing right. D) dollar.