The Eurozone announced in 2015 that it will follow actions taken by both the UK and US Central Bank authorities and print additional money to inject funds into the financial system. This is called:
(a) Structural debt reduction.
(b) Contractionary fiscal policy.
(c) Quantitative Easing.
(d) Austerity Measures.
Answer: (c) Quantitative Easing.
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When inflation is high and unexpected,
A) borrowers of money lose and lenders win. B) borrowers of money win and lenders lose. C) both borrowers and lenders of money win. D) both borrowers and lenders of money lose.
An open market __________ by the Fed increases the money supply; a(n) __________ in the required reserve ratio increases the money supply
A) sale; decrease B) purchase; increase C) sale; increase D) purchase; decrease
Predatory price cutting means reducing prices
What will be an ideal response?
The cyclically-adjusted budget deficit in an economy is zero. If this economy goes into recession, then the actual government budget will be:
A. Balanced B. In deficit C. In surplus D. Expanding