Which of the following is a provision of the Federal Reserve Act or subsequent legislation that weakens the independence of the Federal Reserve?
a) The Federal Reserve's actions are subject to executive branch control.
b) Members of the Federal Reserve Board serve 14-year terms.
c) Members of the Federal Reserve Board cannot be reappointed.
d) The Federal Reserve System is subject to Congressional oversight.
Ans: d) The Federal Reserve System is subject to Congressional oversight.
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Refer to Figure 5-3. At the competitive market equilibrium, for the last unit produced
A) the size of the external cost is Pn - Po. B) the size of the external cost is Pm - Po. C) the size of the external benefit is Pn - Po. D) the size of the external benefit is Pm - Po.
In periods of relatively high levels of unemployment, a classical economist would advocate which of the following governmental policies to move the economy toward full employment?
A. Wage and price controls B. None or a laissez-faire policy C. Fiscal policy D. Monetary policy