The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,
a. expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans.
b. reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply.
c. expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves.
d. reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.
C
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In the economic way of thinking, capital contributes to
A) the exploitation of labor. B) wealth. C) greed. D) macroeconomic inefficiency. E) none of the above.
On a diagram of a production possibilities frontier, economic decline (negative growth) is represented by the production possibilities frontier shifting inward
Indicate whether the statement is true or false
If you agree to a long-term loan at a specified nominal rate of interest and inflation turns out to be higher than was anticipated,
A) the nominal rate of interest falls. B) the nominal rate of interest rises. C) the real rate of interest falls. D) the real rate of interest rises.
The European Economic Community
a. is a good example of a customs union b. is a region in which the production of basic goods, such as steel and energy, are produced collectively c. is a free trade area d. prohibits imports from other countries e. created the GATT rules