For all practical purposes, a nation's monetary base is controlled by:
a. The government, financial institutions, and the central bank.
b. The central bank.
c. The International Monetary Fund and World Bank.
d. Individuals and financial institutions, by means of their preferred asset ratios, and the central bank.
e. No one because the monetary base is a free market quantity that is determined, like many macroeconomics variables, by the forces of supply and demand.
.B
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Monetary policy actions are determined by the
A) Federal Open Market Committee. B) New York Federal Reserve Bank. C) President of the United States. D) U.S. Congress.
Which of the following statements is true?
A) If a tax is imposed on a product sold by a monopolist, the monopolist will maximize its profits by producing where marginal revenue equals marginal cost. B) A monopolist will always charge the highest possible price. C) If a tax is imposed on a product sold by a monopolist, the monopolist can increase its price to pass along the entire tax to consumers. D) Because a monopolist faces no competition, the demand for its product is perfectly inelastic.