Which of the following statements is correct?
I. The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards.
II. The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities.
A) I only B) II only C) Both I and II D) Neither I nor II
C
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Positive economic analysis is said to be
A) true. B) always accurate. C) value-laden. D) objective.
Refer to the graph shown. Suppose the economy is initially at A but then the Fed adopts a contractionary monetary policy. Using the standard AS/AD model reasoning, this policy will cause the economy to move to:
A. B in the short run and the long run. B. C in the short run and A in the long run. C. C in the short run and E in the long run. D. A in the short run and the long run.