What unusual measures did the Fed take in trying to reduce long-term interest rates during the Financial Crisis of 2007-2009?
A) buying mortgage-backed securities issued by Fannie Mae and Freddie Mac
B) reducing the federal funds rate multiple times
C) issuing its own securities
D) eliminating the discount rate on loans to member banks
A
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According to Keynesian economic theory, the government should spend money to pay down the national debt.
a. during an economic depression. b. in order to balance the budget. c. only if it is willing to raise taxes. d. on the military instead of on domestic issues.
Think of examples of goods whose relative price has risen or fallen by a large amount
What will be an ideal response?
The portion of the aggregate supply curve that is a positive function of the general price level represents excess capacity and unemployed resources
a. True b. False Indicate whether the statement is true or false
Probably the toughest part of creating a good mitigation strategy for global climate change is that it is
A. an economics problem. B. an issue that lacks public support. C. not certain that global climate change is even occurring. D. an international problem.