The federal reserve performs all of the following functions

The federal reserve performs all of the following functions except: O set monetary polilcy O make loans to commercial banks O set fiscal policy QUESTION 8 The Chair of the Federal Reserve Board of Governors is appointed by congress for a 14 year term. O True O False QUESTION 9 Which of the following statements is false? An income tax cut would likely shift the aggregate demand curve to the right. An increase in government purchases shifts the aggregate demand curve to the right. The long-run aggregate supply curve is vertical because the price level does not affect the long-run level of real GDP. crease in immigration would shift the aggregate supply curve to the left.

Solution

set fiscal policy.

Fiscal policy is the collective term for the taxing and spending actions of governments.

False

The chair of the Federal Reserve Board of governors is appointed by congress for a 4 year term

An increase in immigration would shift the aggregate supply curve to the left

immigrants increase labor supply, therefore aggregate supply curve shifts rightward with exapnsion in supply of labour.