Which of the Following Is NOT a Method or Purpose

question 33

Multiple Choice

Which of the following is NOT a method or purpose of the Federal Reserve?

• A) To set the discount rate
• B) To control the supply of money
• C) To control inflation
• D) To stimulate the economy
• E) To control the profits of private banks

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Definitions:

Wages and Prices

The relationship between the payment workers receive for their labor and the cost of goods or services in the economy.

Rational Expectations Theory

The hypothesis that individuals form forecasts about the future based on all available information and past experiences, affecting their economic decisions.

Aggregate Supply

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

Government Intervention

The direct or indirect involvement of governmental actions in the market to influence the economy, correct market failures, or protect the public interest.