In response to the severe recession of 2008-2009, the Fed
a. expanded the monetary base and pushed short-term interest rates sharply higher.
b. reduced the size of the monetary base and pushed short-term interest rates sharply higher.
c. more than doubled the size of the monetary base and pushed short-term interest rates to near zero.
d. more than doubled the size of the monetary base and pushed short-term interest rates to a historic high.
C
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For a fixed proportion production function, at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is a. constant b. zero
c. negative. d. a value that cannot be determined.
An increase in aggregate demand tends to cause a ____ a short run Phillips curve at first, then cause a ____ in the short run Phillips curve as people adjust their expectations. a. Movement up along; upward shift
b. Movement up along; downward shift. c. Movement down along; upward shift. d. Movement down along; downward shift.
The adverse selection of wage cuts argument points out that the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate
a. True b. False Indicate whether the statement is true or false
Permanent tax changes have a _____ effect on aggregate demand compared to temporary tax changes
Fill in the blank(s) with correct word