In 2008, the Fed responded to the financial crisis by:
A. offering nearly unlimited short-term financing to any bank that suddenly found itself short on cash.
B. increasing the interest rates to encourage people to save, so banks would have more money on hand to lend.
C. doing nothing, and allowing the automatic stabilizers to bring the economy back to its long run equilibrium.
D. reducing money supply.
A. offering nearly unlimited short-term financing to any bank that suddenly found itself short on cash.
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An expansionary monetary policy increases net exports by ________ interest rates and ________ the value of the dollar
A) lowering nominal; decreasing B) lowering real; decreasing C) raising nominal; increasing D) raising real; increasing
Refer to Figure 10.8. Other things equal, a decrease in the nominal interest rate on money would best be represented by
A) a movement from point A to point C. B) a movement from point A to point D. C) a shift from LM1 to LM2. D) a shift from LM2 to LM1.
Because demand curves slope downward according to the Law of Demand, the price elasticity of demand is a negative number
What will be an ideal response?
Over the last 50 years, the employment ratio has fallen most significantly among ________
A) men B) women C) blacks D) Hispanics