Who determines the open-market operations of the Federal Reserve System?

If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real GDP is $13.4 trillion, then taxes would need to be cut by ________ to restore the economy to potential real GDP

A) $250 billion B) $400 billion C) $640 billion D) None of the above are correct. Taxes should be increased in this case.

The balance of payments equals

A) the sum of the current account and the financial account. B) the current account minus net unilateral transfers. C) net investment income from abroad. D) the net increase in a country's official reserve assets.