What Do Economists Mean When They Refer to the "Size

question 113

Multiple Choice

What do economists mean when they refer to the "size" of the Fed's balance sheet?

• A)the size of the money supply it controls.
• B)its ability to set fiscal policy.
• C)its operating budget.
• D)the sum of all the assets on its balance sheet.
• E)its net worth.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Income Distribution

Income distribution involves the sharing of a company's profits among its shareholders or the allocation of income across various economic groups in a society.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Unlimited Liability

A legal structure in which the owners of a business are personally responsible for all the debts and obligations of the business, without any limit.