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26 An increase in interest rates
A. decreases investment spending on machinery, equipment, and factories, but increases consumption spending on durable goods and net exports.
B. decreases investment spending on machinery, equipment, and factories, and consumption spending on durable goods, but increases net exports.
C. increases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.
D. decreases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.
37. The Federal Open Market Committee (FOMC) is:
A. the main policy making committee of the Fed, composed of the Board of Governors and the presidents of the district Federal Reserve Banks, five of whom have voting authority at any given time.
B. comprised of the twelve presidents of the district Federal Reserve banks.
C. just another name for the Board of Governors.
D. a seven-member board, with each member serving a fourteen-year term.
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