The Council of Economic Advisers

question 4

Multiple Choice

The Council of Economic Advisers

• A)negotiates foreign trade treaties on behalf of the federal government.
• B)regulates all stock market transactions and enforces federal antitrust laws.
• C)sets interest rates for the federal government.
• D)analyzes the economy and economic trends in order to help the president anticipate economic events.

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Definitions:

Federal Reserve

The Federal Reserve is the central bank of the United States, responsible for implementing the country's monetary policy, regulating banks, maintaining financial system stability, and providing financial services.

Monetary Growth

The increase in the money supply in an economy over time, which can influence inflation rates, interest rates, and economic growth.

Open Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.