Answer:
1. The Fed is an independent government agency ⇒ C. A government agency should not have so much control over the economy because politicians are always going to do anything to win the next election.
The Fed is an independent government agency that pursues the best economic policy for the nation independent of what politicians want.
2. The Fed is overseen by the federal government ⇒ A. The Federal Reserve lacks accountability because no one audits the Fed. There is no way to know what really goes on behind the scenes.
The Federal government however, gets to oversee the Fed to ensure accountability and best practices.
3. The Fed conducts monetary policy through open market operations ⇒ B. The Federal Reserve just prints more money when the economy needs it and gives it to link.
The Fed does not only oversee the printing of money by the Treasury, they also conduct monetary policy through the use of OMO by buying securities when they want money supply to increase and selling when they want a decrease.
Answer:<em> The given statement is false.</em>
Explanation:
Although we are worried about using the indirect strategy to pass on bad news, one assistance it provides is ensuring that our acumen will be read while individual is still amenable.
Therefore, even if indirect strategy seems manipulative it is still a better option than direct strategy. We should abstain from using direct strategy to break bad news.
Answer:
b. increases the money supply
Explanation:
When the money supply is increased by the federal reserve the aggregate demand curve will shift to the right, the reason for this is that when the money supply is increased people are more likely to consume more goods and services as there is more money available in the economy. Also one of the ways to increase the money supply is by lowering interest rates and lower interest rate encourage higher investment which will also curve the aggregate demand curve to the right.