11: In the United States, the Federal Reserve can only directly set the discount rate; it engages in open market operations to alter the federal funds rate.
True
False
.
.
12: The United States is often described as a "command" economy.
True
False
.
.
13: When products become more expensive over time, deflation is occurring.
True
False
.
.
14: Profit is also known as net income.
True
False
.
.
15: A currency board is a monetary authority which is required to maintain an exchange rate with a foreign currency.
True
False
.
.
16: Wholesale is the purchase of individual items at a higher price, whereas retail is the purchase of large quantities of goods at a lower price.
True
False
.
.
17: The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold.
True
False
.
.
18: Monetary policy is the economic term which describes the actions of a government in setting the level of public expenditure and how that expenditure is funded. It contrasts with fiscal policy, which describes the policies about the supply of money to the economy.
True
False
.
.
19: In 1997, the wealthiest one-fifth of American families accounted for 47.2 percent of the nation's income.
True
False
.
.
20: The antitrust law seeks to strengthen market forces so that direct regulation is unnecessary.
True
False
.
Answer 4
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