Which of the following is not a power of the Federal Reserve System?
a. Setting the prime interest rate
b. Issuing Federal Reserve notes
c. Buying and selling U.S. government securities
d. Extending loans to member banks
e. Clearing checks
Question 2
If population increases, which of the following will be true?
a. GDP will increase.
b. GDP per capita will fall at a faster rate than the increase in population.
c. GDP must increase if the same standard of living is to be maintained.
d. The labor force must increase if the same standard of living is to be maintained.
e. Overall demand will increase, but per capita aggregate demand will remain constant.
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