In response to the Great Recession of 2007-2009, when did the Federal Reserve first cut the federal funds rate to zero?
a. December 2007
b. June 2008
c. December 2008
d. January 2010
c
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An increase in taxes has the following impact on the budget constraint
A) a parallel move down. B) a parallel move up. C) a tilting to the left. D) a tilting to the right.
Elasticity of demand will ____ as the availability of substitutes ____
a. increase; decreases b. decrease; increases c. increase; increases d. remain unchanged; decreases
Reverse causation is the idea that
A. expected future increases in output cause increases in the current money supply. B. current increases in output cause future increases in the money supply. C. current increases in the money supply cause future increases in output. D. expected future increases in the money supply cause increases in current output.
Assuming labor is the only variable factor of production, production of a good will not occur
A. as long as the product?s price is less than the marginal revenue product of labor. B. as long as the marginal revenue product of labor is positive. C. if society values a good less than it costs firms to hire the workers to produce the good. D. if the marginal cost of a unit of output equals the marginal revenue product of labor.