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Chapter 21, Problem 8QAP

a

To determine

To find:Whether the goals of FED are clear by reading the excerpt.

b)

To determine

To find: Whether the excerpts from the act are consistent with the position of U.S.

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Naked Economics: Undressing the Dismal Science Book by Charles Wheelan   Please refer to the chapter titled, "The Federal Reserve," in the Naked Economics book to answer this question. Which of the below statements DOES NOT CORRECTLY describe the immense power or policy choice of the Federal Reserve (the Fed), as explained in this chapter? 1) The Federal Reserve controls the money supply and therefore the credit tap for the economy.   2) The Fed can use monetary policy to counteract economic downturns, or prevent them from happening.   3) The Fed can inject money into the financial system after sudden shocks, such as the 1987 stock market crash or the terrorist attacks on Sept. 11, 2001.   4) When the Fed opens the credit tap and increases the money supply, interest rates rise and people buy less and borrow less.
41) The current chairman of the Federal Reserve System is A) Milton Friedman. B) Alan Greenspan. C) President Obama. D) Ben Bernanke. 42) The chairman of the Federal Reserve's Board of Governors A) controls the agenda of the Federal Open Market Committee meetings. B) is the main point of contact between the Fed and the President of the U.S. C) receives frequent background briefings on monetary policy issues from a large staff of economists and technical experts. D) All of the above answers are correct. 43) Most of the day-to-day power in monetary policy decisions lies with A) the President of the United States B) the Senate Banking Committee C) the chairman of the Board of Governors D) large commercial banks 44) On the Fed's balance sheet, assets include A) depository institutions deposits at the Federal Reserve and loans to depository institutions. B) U.S. government securities and loans to depository institutions. C)…
Which statement best describes the Federal Reserve's current level of transparency to the American public? The actions of the Fed are largely carried out in secrecy with little regard to public transparency. The Fed is somewhat transparent with regard to some aspects of monetary policy, but does not disclose details regarding macroeconomic conditions and goals. The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy. The Fed only reports to the American public during periods of economic slow down.

Chapter 21 Solutions

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)

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