In response to already low short-term interest rates doing little to stimulate the economy during the Great Recession, the Fed began purchasing mortgage-backed securities and long-term government bonds to bring down long-term interest rates
This policy was called A) closed market operations.
B) contractionary monetary policy.
C) inflation targeting.
D) quantitative easing.
D
You might also like to view...
If the average total cost of producing 20 sweaters an hour falls when the firm doubles all its inputs, then the
A) short-run average total cost curve shifts upward because all inputs have increased. B) firm moves along its short-run average total cost curve. C) firm experiences economies of scale. D) long-run average cost curve shifts downward.
You enter a store and buy a bottle of soda. Do you usually receive consumer surplus?
A) Yes, because you wouldn't buy the soda if your willingness to pay would be less than the price. B) Yes, because you are thirsty. C) No, because you value other drinks more. D) No, because you have less money after the transaction.
An exclusive deal is
A) always illegal. B) welfare reducing. C) one where a firm will only sell to a customer if the customer agrees not to buy anything from the firm's rivals. D) All of the above.
Observations of real-world situations that appear to violate a consumer optimum could be offered as evidence favoring
A. diminishing marginal utility. B. bounded rationality. C. zero marginal utility at a utility-maximizing point. D. utility analysis.