Describe the structure of the Fed's Open Market Committee (FOMC). ...

[clmills979]

Describe the structure of the Fed's Open Market Committee (FOMC). What is this committee's primary responsibility?
 
  What will be an ideal response?

Question 2

If the consumption function is defined as C = 5,500 + 0.9Y, what is the marginal propensity to consume?
 
  A) 0.1 B) 0.9 C) 5.5 D) 6.1

[quynhmickitran]

Answer to Question 1

The FOMC is comprised of the seven members of the Board of Governors in Washington, D.C., the President of the Federal Reserve Bank of New York, and four Presidents (serving one-year rotating terms) from the remaining eleven district banks. This committee assumes primary responsibility for managing the U.S. money supply.

Answer to Question 2

B