The movement away from bank lending towards asset-backed securities has:
A. increased the importance of the bank-lending channel of monetary policy.
B. led the FOMC to abandon interest-rate targets.
C. decreased the importance of the bank-lending channel.
D. eliminated the bank-lending channel as a mechanism for monetary policy.
Answer: C
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The idea that having ownership of an item increases the value that a person puts on the item can be explained by
a. The endowment effect b. Loss aversion c. Overconfident bias d. Anchoring bias
Direct controls on polluting activity
a. have never been tried as an instrument of environmental policy. b. have been the chief instrument of environmental policy. c. have been rejected as a tool of environmental policy. d. are the tool of future environmental policy, based on 1993 legislation.
Which of these activities will most likely result in an external benefit?
a. Ted purchases a dilapidated house and cleans up the yard and exterior of the house. b. Tim purchases an iPhone and downloads new apps. c. Terri purchases a new SUV and drives it to work every day. d. Thomas purchases a suit and wears it on his interviews.
How does the study of microeconomics differ from that of macroeconomics? Give one example each of an issue studied in microeconomics and in macroeconomics
What will be an ideal response?