The relative quickness with which the Open Market Committee can respond to changes in economic indicators leads the Fed to
A) control precisely the growth rate of the money stock.
B) control precisely the growth rate of total spending.
C) make more frequent mistakes in monetary policy than Congress makes in executing fiscal policy.
D) use the discount rate to control bank lending and hence aggregate demand.
Question 2
Price discrimination by sellers is usually observed only in situations where
A) low-price customers can easily resell to high-price customers.
B) prices are set by competing monopolies.
C) sellers are bigots.
D) sellers can effectively identify customers by their demand for the product.
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