Which of the following is the official policy-making body of the Federal Reserve System?
a. Federal Advisory Council
b. The U.S. Treasury
c. The Federal Open Market Committee
d. The Board of Governors
e. The Federal Reserve district banks
Question 2
Suppose there is a reduction in consumer income and an increase in the price of jet fuel, an important resource used to produce air travel. If air travel is a normal good, how will these changes influence the price and quantity of air travel? The price of air travel will (be) ____ and quantity purchased will (be) ____.
a. decrease; indeterminate
b. increase; indeterminate
c. decrease; decrease
d. indeterminate; decrease