Exploring Macroeconomics
8th Edition
ISBN: 9781544363332
Author: Robert L. Sexton
Publisher: Sage Publications
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 19P
To determine
To explain:
The fact that with the excess returns to the U.S. treasury, the federal finances become more independent for its operations out of interest earned on its portfolio.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
How does the Federal reserve Bank "influence" interest rates to meet the objectives of the Fed?
To what extent was the Fed being responsible for the housing price bubble of the early 2000s.
The Federal Reserve annual report. Visit the Federal Reserve www.federalreserve.gov, and select "Monetary Policy." Then click on "Reports" and "Monetary Policy Report " to retrieve the current annual report (parts 1 and 2). Summarize the policy actions of the Board of Governors during the most recent period. In the Fed's opinion, how did the U.S. economy perform?
Chapter 17 Solutions
Exploring Macroeconomics
Knowledge Booster
Similar questions
- Describe two concepts of central bank independence. Is the Fed politically independent? Why do economists think central bank independence is important?arrow_forwardare open market operations the most important tool that the Fed has to help stabilize the economy?arrow_forwardWhat do Federal Reserve economists use the Federal Reserve Board's model of the U.S. economy for? It is used only for forecasting. It is used for forecasting and policy analysis. It is used only to describe the economy. It is used only for policy analysis.arrow_forward
- Which of the following is not true of the U.S. Federal Reserve System? The Fed has representation from commercial banks. The Fed consists of 12 regional banks. The Fed is a part of the U.S. government. The Fed is not owned nor controlled by the federal government.arrow_forwardWhat are the three parts of the FED?arrow_forwarddescribe the actions the Federal Reserve took to maintain a healthy economy during the recent economic crisis. in your opinion, were the actions necessary? were the Fed’s actions effective?arrow_forward
- Does the Fed have control over the federal funds rate and over bank reserves? If so, can the Fed control both simultaneously?arrow_forwardExplain the structure and ownership of the Federal Reserve. What are its roles? How is it managed? How are governors appointed? How can the Fed be the Bank of the US Government and yet be autonomous? Can the Fed be influenced by politics?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning