1. The primary responsibility of conducting monetary policy rests with the:

a. Board of Governors.

b. Federal Open Market Committee.

c. Federal Deposit Insurance Corporation.

d. U.S. Treasury.

2. Credit cards do not fulfill the three functions of money.

True

False

3. If there is an autonomous decrease in spending (a leftward shift in the aggregate demand curve) and the Fed wishes to hold real income constant, then the Fed would:

a. decrease the money supply yielding a leftward shift in the aggregate demand curve.

b. increase the money supply yielding a rightward shift in the aggregate demand curve.

c. hold the money supply constant.

d. none of the above.