List the two main functions performed by the Fed?
The Fed performs two main functions:
1) The Fed regulates banks and, to a broader extent, ensures the health of the banking system.
2) The Fed controls the quantity of the money supply.
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A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town
The plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals A) is unimportant since the firm is reducing the unemployment in the region. B) creates a negative externality. C) is the production of a public good. D) creates a positive externality.
Antitrust issues can be political firestorms. In order to accomplish their economic missions regarding monopolies, regulation, and antitrust policy without incurring the scrutiny of the press and public, many presidents choose to
a. ignore the issue b. adopt the rule of reason c. adopt the per se rule d. manipulate the budgets of enforcement agencies e. promote policies outlined in the Clayton Act