From time to time, the Federal Reserve buys back government bonds from the private sector through a process called
A) voluntary redemption procedures. B) backflip bond investments.
C) open market purchases. D) bond recall procedures.
C
You might also like to view...
Governments are often forced to bail out large banks to prevent the entire economy from being affected adversely. This provision often encourages banks to invest in risky assets. This is an example of ________
A) moral hazard B) a positive externality C) adverse selection D) anchoring
The demand for food is most elastic in countries
A) with low income levels. B) with intermediate income levels. C) with high income levels. D) that are highly urbanized.
A decrease in the price level will lead to
A) a decrease in the real interest rate and an increase in net exports. B) an increase in the real interest rate and an increase in net exports. C) a decrease in the real interest rate and a decrease in net exports. D) an increase in the real interest rate and a decrease in net exports.
Over long periods of time, the cyclical rate of unemployment, on average, ________
A) approaches infinity B) approaches a value of one C) should be close to zero D) approaches the natural rate