6. The Federal Reserve has several means of controlling the nation's money supply. Which of the following is NOT one of them? a) Lending money to other banks b) Printing money c) Setting interest rates d) Setting the value of the dollar on international markets e) Buying and selling bonds on the open market f) Specifying reserve requirements for member banks One way to address income inequality is through a negative income tax. Such an approach would have three components. Which of the following would NOT be one of them? a) An income guarantee the amount given to the taxpayer when the family income is zero. b) A supplementary deduction: an extra deduction for those below a certain adjusted gross income. c) A benefit reduction rate: The rate at which the transfer is reduced as family income rises; and d) A Break-Even Income: the point where family income reaches a level beyond which they no longer qualify for the transfer. Chapter 3 Matching Exercise (5 pts/match) The economy can be measured several ways. The following are measures that are typically used. Please match the statements on the left below with the terms shown on the right by placing the appropriate letter(a, b, c, d, or e) in the blank. the total value of all goods and services produced in the US. a. Nonsense Similar to the above but it includes the earnings of US citizens and businesses abroad. b. Gross Domestic product derived from GDP but it measures only capital investments net of depreciation. Capital replacement investments are not counted in this measure. c. Gross National Product d. Net National Product this measure is derived from the one above by eliminating both indirect business taxes that are included in the price of goods sold, and business transfer payments this measure is restricted to the total of bubble gum sales in the U.S. e. National Income 8 Page