Which of the following is a reason why Fed policy might be ineffective?

A. The wealth effect
B. Crowding out
C. The liquidity trap
D. The foreign substitution effect


Answer: C

Economics

You might also like to view...

Assume that Nation A's production possibilities are either 30 units of bricks or 50 units of wheat. Nation B's production possibilities are 20 units of bricks and 40 units of wheat. Which of the following is true?

A. The high-cost producer of bricks is Nation A. B. Nation A is the least-cost producer of wheat. C. According to the principle of comparative advantage, Nation B should specialize in the production of bricks. D. The opportunity cost of wheat production is lower in Nation B.

Economics

A $10 million open market sale will decrease the monetary base by

A) $10 million. B) $10 million times the money multiplier. C) $10 million divided by the money multiplier. D) an amount between $0 and $10 million, depending on the fraction of the purchase the public wishes to hold as currency.

Economics

Radon Research Corporation (RRC) is one of 24 firms in Albuquerque testing homes for dangerous levels of radon gas. There is a standard test that all testing companies use. The manager of RRC wants to know the number of homes to test in 2015 in order to maximize the firm's profit. The manager forecasted a price of $160 for radon tests in 2015. The firm's marginal cost was estimated asSMC = 200 ? 15Q + 0.8Q2where Q is the number of tests performed each week. RRC's fixed cost will be $250 per week. How many radon tests per week should be undertaken?

A. 16.8 B. 15.5 C. 12.5 D. 20 E. 17.3

Economics

Relative to 1800, the living standard of the average person today in the United States is about _____ times higher

A. 5 B. 12 C. 20 D. 42

Economics