The Federal Open Market Committee consists of A) 12 members, ...

[jhjkgdfhk]

The Federal Open Market Committee consists of
 
  A) 12 members, each of which is the president of one of the 12 regional Federal Reserve banks.
  B) the seven members of the Board of Governors , the Chairman of the Fed, the U.S. Treasury Secretary, and the president of the Federal Reserve Bank of New York.
  C) the chairman of the Fed, the chairman of the president's council of economic advisors, the U.S. Treasury Secretary, and 4 of the 12 Federal Reserve Bank presidents who serve on a rotating basis.
  D) the seven members of the Board of Governors , the president of the Federal Reserve Bank of New York, and 4 other Federal Reserve Bank presidents.

Question 2

Given the table above, suppose consumption in period two is 40,000. Then, the interest rate rises to five percent, and period-two consumption rises to 41,050. We may infer that ________.
 
  A) the income effect is stronger than the substitution effect
  B) the substitution effect is stronger than the income effect
  C) the substitution and income effects cancel out
  D) this consumer has a binding borrowing constraint

[wtf444]

Answer to Question 1

D

Answer to Question 2

B

[jhjkgdfhk]

Thanks for the timely response, appreciate it

[amandalm]

TYSM