Why is the president of the New York Fed always a voting member of the FOMC?
New York is the financial capitol of the United States. All Fed purchases and sales of government securities are conducted through the New York Fed's trading desk. Because of the important role of the New York Fed in implementing open market operations, the NY Fed president always votes on open market policies.
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If the equilibrium interest rate is 4% but the current interest rate is 6%,
a. bond prices will rise. b. money demand will decrease. c. money demand will increase. d. bond prices will fall. e. the money supply will decrease.
The natural unemployment rate includes
a. both frictional and structural unemployment. b. neither frictional nor structural unemployment. c. structural but not frictional unemployment. d. frictional but not structural unemployment.