Describe the temporary lending facilities that the Fed set up during the Financial Crisis of 2007-2009
What will be an ideal response?
Under the primary dealer credit facility, primary dealers could borrow overnight using mortgage-backed securities as collateral. Under the term securities lending facility, the Fed would loan up to $200 billion of Treasury securities in exchange for mortgage-backed securities. Under the commercial paper funding facility, the Fed purchased three month commercial paper issued by nonfinancial corporations. Under Term Asset-Backed Securities Loan facility, the Federal Reserve Bank of New York extended three-year or five-year loans to help investors fund the purchase of asset-backed securities.
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What are the components of fiscal policy? Explain how fiscal policy affects aggregate demand
What will be an ideal response?
The ordering of market structures from most market power to least market power (where market power is the ability to set its own price) is:
a. monopoly, monopolistic competition, oligopoly, perfect competition. b. perfect competition, monopolistic competition, oligopoly, monopoly. c. oligopoly, monopoly, monopolistic competition, perfect competition. d. monopoly, oligopoly, monopolistic competition, perfect competition. e. monopoly, perfect competition, monopolistic competition, oligopoly.
Which are contractionary fiscal policies?
a. Increased taxation and decreased government spending b. Increased taxation and increased government spending c. No change in taxation and increased government spending d. Decreased taxation and no change in government spending
Refer to the information provided in Table 14.3 below to answer the question that follows. Table 14.3B's Strategy ?AdvertiseDon't Advertise??A's profit $75 millionA's profit $200 million?AdvertiseB's profit $75 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $100 million?AdvertiseB's profit $200 millionB's profit $100 millionRefer to Table 14.3. The result of this game is known as a
A. repeated strategy. B. tit-for-tat outcome. C. collusive outcome. D. prisoners' dilemma.