What is meant by the term "credit easing"?
A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity.
B) It is a strategy which involves keeping interest rates very low by providing substantial reserves
for as long as is necessary to avoid deflation and encourage spending.
C) It is a strategy which involves lowering the required reserve ratio and lowering the federal funds
rate to encourage banks to increase loan creation.
D) It is a strategy which involves allowing interest rates to rise slowly by providing substantial
reserves for as long as is necessary to avoid inflation.
Ans: A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity.
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Utility is the pleasure, satisfaction, or enjoyment derived from consumption.
Answer the following statement true (T) or false (F)
Cap-and-trade refers to
A) capping emissions and issuing tradeable emissions permits. B) capping revenue from selling emissions permits. C) countries trading fishing rights in international waters. D) capping taxes on firms that engage in international trade. E) capping the benefits gained from pollution controls.
According to Angus Madison, a leading authority in the area, world per capita GDP
a. increased by about 50 percent during the 800 years following year 1000 . but it increased by nearly tenfold during the past 200 years. b. increased by nearly tenfold during the 800 years between 1000 and 1813, but it increased by only 50 percent during the past 200 years. c. has grown steadily during the past 1000 years. d. Grew at an annual rate of more than 2 percent during 1000-1813, but the annual growth rate has declined as the population increased during the past 200 years.
Why do polluting firms overproduce? Use a completely and correctly labeled graph to illustrate your answer.
What will be an ideal response?