This Application refers to quantitative easing, a policy that occurs when the Fed
A) changes the reserve requirement. B) purchases long-term securities.
C) raises the discount rate. D) sells mortgage-backed securities.
B
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A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if
A) a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. B) an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. C) the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. D) the variable measured along the x-axis and the variable measured along the y-axis move in the same direction.
For main industrial countries such as Japan and the U.S
A) there is much less month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run. B) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run. C) there is almost the same month-to-month variability of the exchange rate and price levels. D) it is hard to tell whether month-to-month variability of the exchange rate is similar to changes in price levels. E) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the long run.
Capital per person in India is about six percent and per capita income is about eight percent of the U.S. level. Given that per capita income y = A , calculate the level of total factor productivity (A), relative to the U.S
level, that would be needed for India to match the U.S. level of per capita income. ( = 0.43)
The Austrian school of economists stressed on the efficiency of the markets on the pretext that:
a. resources could be efficiently allocated through price system and free markets. b. governmental intervention was necessary for the efficient allocation of resources. c. the price charged under the free market system was always lower than under central planning. d. the market had never failed earlier. e. the market did not suffer from imperfect information.