During the economic downturn of 2008-2009, the Federal Reserve
a. used open-market operations to purchase mortgages and corporate debt, just as it frequently does even when the economy is functioning normally.
b. took the unusual step of using open-market operations to purchase mortgages and corporate debt.
c. explicitly set its target rate of inflation at zero.
d. explicitly set its target rate of inflation well above zero.
b
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Over the long-run, fluctuations in the growth rate in output are primarily driven by fluctuations in
a. investment in capital. b. educational attainment. c. fluctuations in the labor force. d. fluctuations in labor productivity.
In the 15th century, _____ rose to prominence in trade with areas to the east of Europe, while _____ dominated trade with the West
a. Venice; England b. Italy; Denmark c. Portugal; Spain d. France; Holland
Permanent differentials in resource prices will cause
a. all of the following b. the allocation of fewer resources to lower-paid uses c. the equalization of payments for the same resource in different uses d. no change in the allocation of resources e. the allocation of more resources to higher-paid uses
If the U.S. were to revert to a gold standard, trade deficits would:
A. result in higher domestic interest rates. B. quickly disappear. C. result in high inflation. D. result in gold reserves in the U.S. increasing.