During 2008-2013, the Fed initiated several rounds of "quantitative easing.". Under this policy, the Fed
a. increased its purchases of financial assets and thereby injected additional reserves into the banking system.
b. increased its purchases of financial assets, which reduced the reserves available to the banking system.
c. reduced its purchases of financial assets and thereby injected additional reserves into the banking system.
d. reduced its purchases of financial assets and thereby reduced the quantity of reserves available to the banking system.
A
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Refer to Figure 5-16. How much is Amit willing to pay per street light to have 4 street lights installed?
A) $3,600 B) $2,700 C) $1,800 D) $900
The MP curve may be used to represent ________
A) movements of the real interest rate as a direct policy action of the Federal Reserve B) movements of the real interest rate that are independent of direct Federal Reserve action C) how the real interest rate is related to the inflation rate D) all of the above E) none of the above
The "vicious cycle of discrimination" refers to
a. the use of statistical discrimination to perpetuate the impact of employer prejudice on minorities b. the portion of the wage differential between two groups that cannot be accounted for by differences in education and job experience c. lower wage rates that reduce incentives to improve skill levels and gain job experience, which perpetuates lower wage rates d. any job-market discrimination that remains after all premarket discrimination has been eliminated e. job-market discrimination that leads to increased prejudices among workers and customers, thus generating more discrimination
Suppose there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If, in the base year, the Price of Good A is $5 and the Price of Good B is $10, and in the next year the Price of Good A is $6 and the Price of Good B is $9, the inflation that occurred in the second year is
A. 20%. B. 10%. C. 100%. D. 50%.