In 2008, the Fed created a new policy tool called
A) federal funds zero-rate, which required the Fed to lower the rate to near zero percent.
B) open market operations, which required the Fed to buy securities from only the federal government.
C) quantitative easing, which required the Fed to pay interest on required reserves.
D) interest rate reductions, which allowed the Fed to lower interest rates paid to banks.
E) quantitative easing, which allowed the Fed to buy private securities as well as government securities.
E
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If a restaurant like Buffalo Wild Wings has higher costs than a comparable Hooters restaurant, the only way it can have higher profits is if
A) the demand for its food is higher than the demand for food at Hooters. B) it sells the quantity associated with its minimum average total cost. C) it has more locations than Hooters. D) its marginal revenue is lower than the marginal revenue of Hooters.
The slope of the consumption function is equal to the marginal propensity to save (MPS)
a. True b. False Indicate whether the statement is true or false
A World View article, "The Female 'Inequality Trap,'" says that in many poor nations the "… returns on female human capital investment is low." When women are not allowed to work outside the home or to receive an education, this is referred to as
A. An inequality trap. B. A justice gap. C. A productivity trap. D. A prejudice gap.
Which of the following statements is TRUE for the U.S. economy?
A) Supply of services always reflects all social costs. B) Demand for services always reflects all social costs. C) Private costs are not always equal to social costs. D) Social benefits are always emphasized in advertising.