Quantitative easing (QE) differs from the normal use of open market operations in that it
A. involves the selling of securities.
B. targets short-term interest rates.
C. targets long-term interest rates.
D. involves the buying of securities.
Answer: C
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The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by ________
A) $5.00 an hour B) $2.50 an hour C) $7.50 an hour D) $0.50 a bagel
If the supply of loanable funds shifts right, then the equilibrium
a. interest rate falls, so domestic residents will want to purchase more foreign assets. b. interest rate falls, so domestic residents will want to purchase fewer foreign assets. c. interest rate rises, so domestic residents will want to purchase more foreign assets. d. interest rate rises, so domestic residents will want to purchase fewer foreign assets.
In long-run equilibrium, monopolistic competition entails:
A. an efficient allocation of resources. B. an overallocation of resources due to inadequate capacity. C. an underallocation of resources due to excess capacity. D. production at the minimum attainable average total cost.
A spike in "All Other Outlays" of the federal government in 2009 was due to: a. an increase in the financial aid given to Greece earlier that year
b. an increase in the expenditures on Social Security and Medicare. c. the fiscal stimulus package passed earlier that year. d. a sudden increase in military expenditure as a result of the war in Iraq. e. an increase in the national debt earlier that year.