Refer to Table 20-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?

Assume a fixed demand for money curve and the Fed decreases the money supply. In response, people will:

a. sell bonds, thus driving up the interest rate. b. sell bonds, thus driving down the interest rate. c. buy bonds, thus driving up the interest rate. d. buy bonds, thus driving down the interest rate.

The Federal Reserve System is a(n)

a. corporation owned by its member banks. b. independent branch of the U.S. government. c. corporation owned by the government and member banks. d. agency created by presidential executive order.