Which of the following tools does the Fed use to pursue its objectives?
A) It influences short-run and long-run interest rates.
B) It provides loans to new firms and businesses at extremely low rates of interest.
C) It determines the efficient level of government spending.
D) It influences market prices through price ceilings and price floors.
Question 2
Compensation of employees is the largest component of national income.
Indicate whether the statement is true or false