The process of buying financial assets to stimulate the economy when the central bank target interest rate is near or at zero and the interest rate cannot be lowered further is called:
a. bond-trading.
b. quantitative bidding.
c. open market purchase.
d. quantitative easing.
e. open market sale.
d
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Refer to the figure above. When the demand curve for gas is D2 and the supply curve of gas is S, the equilibrium quantity is:
A) 50 gallons. B) 70 gallons. C) 20 gallons. D) 40 gallons.
Refer to the figure above. The deadweight cost of the tariff equals
A) $10,000. B) $25,000. C) $50,000. D) cannot be calculated without further information.
An increase in planned savings, all else held constant, will always result in
a. a slowdown in the circular flow of income. b. an increase in the circular flow. c. an increase in planned investment spending. d. an increase in the price level.
Recessions typically last longer than expansions
a. True b. False