During 2008-2013, the Fed initiated several rounds of "quantitative easing.". Under this policy, the Fed
a. increased its purchases of financial assets and thereby injected additional reserves into the banking system.
b. increased its purchases of financial assets, which reduced the reserves available to the banking system.
c. reduced its purchases of financial assets and thereby injected additional reserves into the banking system.
d. reduced its purchases of financial assets and thereby reduced the quantity of reserves available to the banking system.
A
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In the above table, the cross price elasticity of demand for good Y with good X when PX rises from $10 to $12 is
A) +0.29. B) +1.83. C) +0.58. D) -0.58.
Phil and Kelly have always wanted to take a cruise. Although willing to pay $5,000 for a Caribbean cruise for two, they were able to purchase a cruise vacation for two for $3,500 . Their total consumer surplus amounted to:
a. $750 b. $5,000. c. $1,500. d. $3,500.
If the Apple corporation sells a bond it is
a. borrowing directly from the public. b. borrowing indirectly from the public. c. selling shares of ownership directly to the public. d. selling shares of ownership indirectly to the public.
Which of the following is most consistent with the basic postulate of economics: changes in incentives exert a predictable impact on human behavior?
a. Farmers produce fewer bushels of wheat in response to an increase in the price of wheat. b. People will buy more milk at a price of $3 per gallon than at $2 per gallon. c. People will buy less gas if the price of gas increases by $0.50 per gallon. d. People will consume more beef if the price increases from $1 to $2 per pound.