The Federal Reserve Bank Has the Responsibility of Ensuring the Reasonableness

question 44

True/False

The Federal Reserve Bank has the responsibility of ensuring the reasonableness of the interest rates for business and personal loans within the United States.

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Definitions:

Federal Budget

An estimate of government expenditures and revenues for a specific fiscal year, as determined by the President and Congress in the United States.

Aggregate Demand

The total demand for all goods and services within a particular market or economy.

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Equilibrium GDP

The level of Gross Domestic Product at which total production equals total spending, indicating a state of economic balance without tendency to change.