Why do adjustments to interest rates by the Federal Reserve Board matter?
Answer:
An ideal response will:
1. Explain the role of the Federal Reserve in controlling the money supply.
2. Describe how adjusting the interest rate up or down will affect the money supply.
3. Illustrate how lowering the interest rate reduces the cost of money, which makes borrowing easier, which increases spending, affects economic growth.
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What is the key difference between a progressive tax and a regressive tax?
a. income levels b. level of education c. occupation d. the president’s party
International organizations are about coordination and distribution of resources. Given this focus, select the best definition of free-riding:
a. The way non-state actors take advantage of international organizations to gain unfair advantage. b. Obtaining extra or additional benefits by failing to honor international norms of behavior. c. The way national populations expect leaders to provide them with goods and services for free. d. The manner in which less powerful nations take advantage of the generosity of powerful nations.