From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, the huge expansion in the Fed's balance sheet and the monetary base did not result in a large increase in monetary supply because
A) most of it just flowed into holdings of excess reserve.
B) the Fed also increased the required reserve ratio.
C) the Fed also conducted open market sales.
D) the discount loan decreased.
A
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Use the following graph to answer the next question.
A shift of the aggregate demand curve from AD1 to AD0 might be caused by a(n) ________.
A. decrease in net export spending B. increase in aggregate supply C. increase in investment spending D. decrease in the amount of output supplied
If Fast Prints has a contract with local couriers to deliver their products to customers located throughout the city, this is an example of ________.
A) outsourcing B) a market transaction C) forward integration D) backward integration
If the price level increases, the money demand curve will
a. shift leftward b. become steeper c. remain in the same position; however, there will be movement upward along the curve d. shift rightward e. remain in the same position; however, there will be movement downward along the curve
According to the rational expectationists,
A. even if there were a recession or substantial inflation, the best government policy would be to do nothing. B. the dramatic oil price shocks of 1973 and 1979 created declines in aggregate supply, lowering the natural level of real GDP. C. at best, government anti-recessionary policies would have no effect whatsoever. D. All of the choices agree with the thought of rational expectationists.