Which of the following is not a goal of the Fed?
a. Maintaining a high level of employment
b. Maintaining stability in interest rates
c. Maintaining high prices to encourage production
d. Maintaining stability in financial markets
e. Maintaining stability in foreign exchange markets
QUESTION 2Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines _____.
a. during the Great Depression
b. in the 1940s
c. during the 1950s
d. during the 1980s
e. during the 1990s
QUESTION 3A horizontal merger between two firms occurs when:
a. the products of the merging firms were not related in any manner before the merger.
b. one firm is a producer of products, and the other firm is a producer of services.
c. one firm is a domestic firm, and the other is a foreign company.
d. the firms stood in a buyer-seller relationship before the merger.
e. the merger partners were competitors.
QUESTION 4The Federal Reserve System has the power to:
a. raise or lower federal income tax rates.
b. balance the federal government budget.
c. increase or decrease federal government spending.
d. compete with commercial banks in making loans to business firms.
e. buy and sell federal government securities.
QUESTION 5The cumulative power of productivity growth:
a. emphasizes the importance of short-term growth.
b. emphasizes the importance of long-term growth.
c. emphasizes the importance of capitallabor ratio.
d. increases poverty in an economy.
e. leads to capital deepening
QUESTION 6Which of the following mergers would result from the purchase of a paper mill by a textbook publishing company?
a. An interlocking merger.
b. A vertical merger.
c. A conglomerate merger.
d. A horizontal merger.
QUESTION 7The discount rate is the interest rate that:
a. banks charge on large loans.
b. banks charge on loans to other banks.
c. the Fed charges on loans to branches of the U.S. government.
d. the Fed charges on loans to depository institutions.
e. the Fed charges on loans to the public.
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