The Fed is structured as an agency of the executive branch, with the Chairman of the Fed answering directly to the President.

The price of a gallon of milk falls. Which of the following is a possible cause?

A) a decrease in the price of oatmeal, a complement to milk B) a discovery that milk cause diabetes C) Milk is a normal good and people's incomes rise. D) a drought that reduces supplies of feed grains fed to cows that produce milk

Assume that an economic boom occurs in the United States, so that the United States has a much higher growth rate than other nations. What will happen to the exchange rate of the U.S. dollar?

What will be an ideal response?