international economy estion 29: Which of the following is the best description
ID: 1127846 • Letter: I
Question
international economy
estion 29: Which of the following is the best description of the role of the Federal Reserve Bank a. The Federal Reserve Bank is the monetary authority in the US; it fixes prices and wages in Qu in the US economy? industries that are important to national security and regulates the banking industry The Federal Reserve Bank holds the checking account of the US government and issues checks for tax refunds, but otherwise it has nothing to do with our private banking system The Federal Reserve Bank is the monetary authority in the US; it buys and sells government bonds to control the money supply, influencing interest rates and investment throughout the economy The Federal Reserve Bank holds the US Reserve Asset Account and is responsible for making payments of US currency to foreign countries when we have a trade deficit or a deficit in the Capital Accounts of our Balance of Payment, but except for the trade sector it has nothing to do with US government transactions or the private banking system b. c. d. Question 30: If technology innovation and to improve infrastructure, so that Aggregate Supply increases as well as Aggregate Demand, what might we reasonably predict will happen to GDP and to the general price level? the government stimulates the economy by increasing its expenditures to support GDP will increase and the general price level will definitely increase as well GDP will decrease and the general price level will definitely decrease as well GDP will increase but the general price level might not increase because of the outward shift in supply GDP will decrease and the general price level will definitely increase because of the outward shift in demand a. b. c. d. Credit worth 1 point] Which of the following answer choices accurately Question 31: [Extra describes the goals and method of open market operation? ic growth, the Federal Reserve Bank should sell bonds to the bank, d this will improve the qualityExplanation / Answer
29.
Option c is correct
The Federal Reserve Bank is the monetary authority in the US; it buys and sells government bonds to control the money supply, influencing interest rates and investment throughout the economy.
30.
Option c is correct
Expenditures to support technology innovation and to improve infrastructure would lead to an increase in GDP but the general price level might not increase because of the outward shift in supply.
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