1. What currently backs the money supply in the United States? p. 290.

2. Explain the historical background behind the formation of the Federal Reserve System , p. 295.

3. Explain what is the purpose of the FOMC and who are its members, p. 297.

4. List & explain all the functions of the Federal Reserve, p. 298.

5. Discussion Questions #8---Chapter 14 p. 308.

{ 2900f446 > Page H-1 Page H-2 Selected Economics Statistics for Various Years, 1929-1993 Statistics in rows 1-5 are in billions of dollars in the year specified. Numbers may not add to totals because of rounding. GDP AND INCOME DATA Gross domestic product (billions of nominal dollars) Page H-3 1A Personal consumption expenditures 77.4 108.6 144.2 192.0 1B Gross private domestic investment 172 92 33.1 56.5 1C Government purchases 9.6 108.6 43.0 50.5 1D Net exports of goods and services 0.4 =20 72 0.7 Net domestic product 3 | National income 942 2009 201.3 266.6 A Wages and salaries 514 1243 122.5 158.3 3B Rent 6.1 6.3 6.9 8.8 B Interest 4.6 24 1.8 gzl 3D Profits 10.8 25.0 18.2 36.1 { 2950f446 > D Aa & A Page 2 Shows Graphic Text Alternative (FM) (%) Return to A Page 2 Shows Graphic A text reads: Support at every step. The page shows the following text. A titled reads, Students get learning that fits vou. Effective tools for efficient studying: Connect is designed to help you be more productive with simple, flexible, intuitive tools that maximize your study time and meet your individual learning needs. Get learning that works for you with Connect. Study anytime, anywhere: Download the free Read Anywhere app and access your online e Book, Smart Book 2 point 0, or Adaptive Learning Assignments when it's convenient, even if you're offline. And since the app automatically syncs with your Connect account, all of your work is available every time you open it. Find out more at mh education dot com slash read anywhere. A mobile screen displays a book page. A comment from Jordan Cunningham, Eastern Washington University reads as follows: \"I really liked this appit made it easy to study when you don't have your textbook in front of you. A title reads, Everything you need in one place: Your Connect course has everything you needwhether reading your digital Book or completing assignments for class, Connect makes it easy to get vour work done. Learning for everyone: McGraw Hill works directly with Accessibility Services Departments and faculty to meet the learning needs of all students. Please contact your Accessibility Services Office and ask them to email accessibility at mh education dot com, or visit mh el R B Ml s e S L S e T W i SETSRRRC AT e e, B e e = ( 2970f446 > D as & Figure 11 Text Alternative (Chapter 1) (%) Return to F igure 1.1 The horizontal axis ranges from 0 through 14 in increments of 2. The vertical axis ranges from 0 through 12 in increments of 2. The data is as follows: The line decreases from (0, 6) through (12, 0). The area under it is labeled as attainable. At (0, 6) income as 120 dollars over Pt as 20 dollars equals 6. At (12, 0) income as 120 dollars over Pb as 10 dollars equals 12. Note: All data is approximate. (3 Return to F igure 1.1 = 2980f446 > D as & Figure 1.2 Text Alternative (Chapter 1) (%) Return to F igure 1.2 The horizontal axis ranges from 1 through 9 in increments of 1. The vertical axis ranges from 1 through 10 in increments of 1. The data is as follows: The production possibilities curve decreases from (0, 10) through (4, 0). The curve passes through 5 points as A through E. The area under it is labeled as attainable. The area over it is labeled as unattainable. A point W appears in this region. Note: All data is approximate. (3 Return to F igure 1.2 { 3080f446 > P A Graph of Study Time Graphic Text Alternative (Chapter 1) (%) Return to A Graph of Study Time Graphic The horizontal axis ranges from 0 through 10 in increments of 2. The vertical axis ranges from 0 through 100 in increments of 20. The data is as follows: The line increases from (0, 10) to (9, 100) through 4 points. Note: All data is approximate. Return to A Graph of Study Time Graphic = { 340f446 > A APPENDIX PROBLEMS connect 1. Graph and label as either direct or indirect the relationships you would expect to find between (a) the number of inches of rainfall per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of an entertainer and the price of her concert tickets. LOLS 2. Indicate how each of the following might affect the data shown in the table and graph in @ Figure 2 of this appendix: LOLS8 a. GSU's athletic director schedules higher-quality opponents. b. An NBA team locates in the city where GSU plays. . GSU contracts to have all its home games televised. 3. The table at the top of the next page contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the grid displayed for this problem. What is the slope of the line? The vertical intercept? Write the equation that represents this line. What would you predict saving to be at the $12.500 level of income? LOLS $1,500 Graph far Problem 3 1,000