According to the quantity theory of money, if the long-run economic growth rate is 2.5%, by how much should the Fed increase the money supply if it wants inflation to be 2%?

Answer the following questions true (T) or false (F)

1. The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomic topic. 2. Examining the conditions that could lead to unemployment in an economy is an example of a microeconomic topic. 3. Suppose that to increase sales of hybrid vehicles, auto manufacturers are offering large cash incentives. This is an example of a macroeconomic topic.

Which of the following is not part of the Federal Reserve System?

A. Council of Economic Advisors B. Board of Governors C. Federal Open Market Committee D. 12 Federal Reserve District Banks