When the United States engaged in quantitative easing from 2008 to 2014, why didn't the money supply rise sharply?
A) Foreigners wanted all the new dollars created by the Federal Reserve.
B) Banks held the increased monetary base as excess reserves.
C) The Fed offset the increased monetary base by raising reserve requirements.
D) The Fed offset the increased monetary base by buying foreign currency.
B
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A horizontal line showing the current rate of inflation, as determined by past expectations and pricing decisions is called the:
A. short-run aggregate supply line. B. short-run equilibrium output line. C. aggregate demand curve. D. long-run aggregate supply line.
Suppose we are considering the milk market and we have two sets of values, as shown by the numbers in parentheses, which represent two points on a line: (59 billion quarts; $4) and (78 billion quarts; $6). This line is most likely a
A. production possibilities frontier for milk. B. supply curve for milk. C. demand curve for milk. D. ray through the origin. E. time series line.
The basic Keynesian model is built on the key assumption that:
A. firms meet the demand for their products at preset prices. B. prices are prevented from changing frequently by government regulations. C. firms price their products so as to see a preset quantity of output. D. menu costs are not significant.
Which of the following industries is the best example of an oligopoly?
A. the restaurant industry B. the clothing industry C. the airline industry D. the corn industry