Which of the Following Is Not Correct

question 13

Multiple Choice

Which of the following is not correct?

• A) The president of the New York Fed gets to vote at every meeting of the Federal Open Market Committee,but this is not true of the presidents of the other regional Federal Reserve Banks.
• B) The Fed's policy decisions influence the economy's rate of inflation in the short run and the economy's employment and production in the long run.
• C) The Fed's primary tool of monetary policy is open-market operations.
• D) All of the above are correct.

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Definitions:

Output Effect

The output effect refers to the impact changes in production volume have on a company's total costs and profitability.

Substitute Resource

A resource that can be used in place of another in production processes, often influencing supply and price levels.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Law of Diminishing Returns

An economic principle stating that as one input in the production process is incrementally increased, holding all other inputs constant, there will be a point at which the added output from each additional unit of input will start to decrease.