QUESTION 14

The theory of bureaucratic behavior indicates that _____

		A. government agencies attempt to increase their power and prestige.
		B. government agencies attempt to maximize their welfare
		both A. and B. are true.
		neither A. nor B. is true.

1 points

QUESTION 15

_______ is the entity in the Federal Reserve System that controls the reserve requirements.

		FOMC
		Board of governors
		Regional Fed banks
		LOcal commercial banks

1 points

QUESTION 16

Upward movements in interest rates _____

		A. creates hostility toward the Fed and leads to demands that the Fed's power be curtailed.
		B. makes it more difficult for construction firms to plan how many houses to build.
		C. increases consumers' willingness to purchase houses.
		Both A and B