The Fed's response to the financial crisis of 2007 and 2008 was to
A. raise the reserve requirement.
B. raise the federal funds rate.
C. encourage discount window borrowing.
D. reduce taxes on financial institutions.
Answer: C
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In a closed economy, national saving equals
A) C + I + G. B) Y - C - G. C) Y - C - I. D) Y - G - I.
All of the following are key features of the new the federal government's national health care program EXCEPT
A) people must either purchase health insurance or pay a fine to the federal government. B) a young person in good health can opt not to purchase health insurance without penalty. C) firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) government-directed exchanges will assist in matching individuals and small businesses with health insurance policies that satisfy government requirements.
If the quantity of tickets to the fair sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
a. price elastic. b. price inelastic. c. perfectly inelastic. d. unitary elastic.
Refer to Figure 8.9. If this farmer is producing the profit maximizing level of output, her profit is A) $0. B) $1,000. C) $2,000. D) $3,000.