In 2008 the Fed added a new monetary tool. What is that tool?
A. Interest payments to banks on their bank reserves
B. The discount rate required for banks to borrow money
C. The fed funds rate for overnight funds
D. Open market operations meant to change the supply of money
Answer: A
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What all "New Classical" models have in common is the assumption of
A) imperfect information. B) continuous clearing of product and labor markets. C) the primary importance of technological and supply shocks in causing business cycles. D) downward nominal wage rigidity. E) countercyclical real wages.
Economists use a preference map to illustrate that
A) more is better than less. B) preferences are transitive. C) preferences are complete. D) All of the above.
When a demand curve is expressed in log-linear form, such as log(Q) = a - b log(P) + b2 log(P2) + c log(I), the coefficients of the demand determinants correspond to:
A. changes in determinants other than price. B. the parameters that may fluctuate in value. C. the independent variables in the model. D. the elasticity values of those determinants.
In 2017, an income of $125,000 would, roughly, make a family
A. richer than 40 percent of U.S. households but poorer than 35 percent. B. richer than 50 percent of U.S. households but poorer than 25 percent. C. richer than 85 percent of U.S. households but poorer than 8 percent. D. richer than 95 percent of U.S. households but poorer than 1 percent.