Which of the following measures did the Fed take during the financial crisis of 2008?
a. The Fed lowered the discount rate and paid interest on reserves held at the Fed.
b. The Fed increased the reserve requirement ratio
c. The Fed sold all government securities.
d. The Fed decreased its spending.
e. The Fed increased the discount rate.
a
You might also like to view...
Refer to Figure 13-2. Ceteris paribus, an increase in workers and firms adjusting to having previously underestimated the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home, because they are assuming the government will bail them out of a bad mortgage as it has done before.
Answer the following statement true (T) or false (F)
Irving owns a chain of movie theaters. He is considering whether he should build a new theater downtown. The expected rate of return is 15 percent per year. He can borrow money at a 12 percent interest rate to finance the project. Should Irving proceed with this project?
What will be an ideal response?
Refer to the data provided in Table 10.3 below to answer the following question(s).
Table 10.3 
Refer to Table 10.3. If workers are paid $600 per day, then the firm is profit maximizing when it hires ________ workers.
A. two B. three C. four D. five