When the Fed signals how long it expects interest rates to remain at a low level, it is said to be engaging in
A) credit easing.
B) forward guidance.
C) quantitative easing.
D) a maturity extension program.
B
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Other things constant, which case would tend to reflect the highest elasticity of demand for eggs?
A) A restaurant that spends 1% of their budget on eggs B) A restaurant that spends 2% of their budget on eggs C) A restaurant that spends 5% of their budget on eggs D) The question can't be answered without information on the price of eggs.
From an initial IS-LM equilibrium with a normally-sloped IS curve and a vertical LM curve, the money supply increases. A the new IS-LM equilibrium we have
A) higher income and a lower interest rate. B) higher income and an unchanged interest rate. C) an unchanged income and a lower interest rate. D) lower income and an unchanged interest rate. E) an unchanged income and a higher interest rate.
How might real business cycle theorists respond to evidence of procyclical inflation?
What will be an ideal response?
Some years ago, the World Bank surveyed the ways in which countries encouraged or discouraged market activity. Its conclusion was
A. when poor people are allowed access to the institutions richer people enjoy, they are ill equipped to take advantage of those benefits. B. when poor people are allowed access to the institutions richer people enjoy, they can thrive and help themselves. C. that there was no measurable difference between the countries that actively encouraged market activity from those that discouraged it. D. without the proper resources, encouraging market activity had no effect.