Author Question: Which of the following is true of the Fed? a. The law lets the Fed decide how best to promote full ... (Read 59 times)

mrsjacobs44 · **on:** Jun 30, 2018

Which of the following is true of the Fed?
a. The law lets the Fed decide how best to promote full employment and output in the U.S. economy.
b. It relies heavily on Congressional appropriations.
c. The president sits on the Board of Governors.
d. Congress must approve any new monetary policy.
e. The president must approve any new monetary policy.

Question 2

For an economy to eliminate inflation once people have begun to anticipate it, _____.
a. a passive policy approach must be followed
b. the monetary authorities must announce their decisions
c. actual inflation must be greater than anticipated inflation
d. cold turkey solutions that lead to further inflation must be avoided
e. a recession will have to be endured until expectations have been reduced