When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A. quantitative tightening.
B. qualitative tightening.
C. qualitative easing.
D. quantitative easing.
Answer: D
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In the Fixed Effects regression model, you should exclude one of the binary variables for the entities when an intercept is present in the equation
A) because one of the entities is always excluded. B) because there are already too many coefficients to estimate. C) to allow for some changes between entities to take place. D) to avoid perfect multicollinearity.
Suppose a U.S. automobile manufacturer produced $200 million worth of automobiles in the United States in 2009, but $50 million worth went unsold. How much was the company's contribution to GDP?
a. $50 million b. $250 million c. $150 million d. $200 million e. -$150 million
Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as
a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. employed and not in the labor force.
According to economic theory, how do people make decisions?
A) They make decisions in the same manner as their parents did. B) They make decisions by looking at what others have done in the same situation and then doing the opposite. C) They make decisions by looking at what others have done in the same situation and then doing the same. D) They make decisions based on their own self-interest.