When the Fed increases the quantity of assets it owns, it is said to be engaging in
A. a maturity extension program.
B. forward guidance.
C. quantitative easing.
D. credit easing.
Answer: C
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Suppose a new technology is developed that increases the productivity of labor. You would expect
A. the wage rate to fall, since employers will want less labor. B. the demand for labor to fall. C. the demand for labor to rise. D. an increase in unemployment as firms replace labor with technology.
Which of the following increases the supply of gasoline?
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied B) an increase in the price of gasoline C) a decrease in the price of a resource used to produce gasoline, such as crude oil D) a decrease in the demand for gas-guzzling, sport utility vehicles E) an increase in income if gas-guzzling, sport utility vehicles are a normal good
_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
A) Negative externalities B) Moral hazard C) Positive externalities D) Bargaining
Using outlet stores to price discriminate has been successful for many companies, with sales increasing faster than at conventional retail stores
Indicate whether the statement is true or false