Which of the following is not correct about quantitative easing?

A) It is one of the conventional monetary policy tools.
B) It refers to the Fed's asset purchasing program.
C) It helped reduce term premium on long-term government bonds.
D) As a result, the balance sheet of the Fed is much larger than it was before the crisis.


A

Economics

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The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management will

a. Do nothing-it cannot violate the regulation b. Offer a bundle of both the apartment and furniture together for $1000 c. Offer the controlled rent but force the tenants to rent furniture from the management d. Both B&C

Economics

If the demand for the finished good is elastic, the demand for the resources used to produce that good will be inelastic

Indicate whether the statement is true or false

Economics

Which of the following most clearly illustrates the concept of "derived demand"?

a. An increase in the price of steak causes the demand for poultry to increase. b. An increase in the demand for new houses leads to an increase in the demand for construction workers. c. An increase in consumer income leads to an increase in the demand for services provided by the government. d. An increase in the demand for new cars causes the demand for used automobiles to rise.

Economics

At a given interest rate, the investment function shows

A. how much businesses will spend on the capital stock. B. how many funds people will invest in the stock market. C. how profitable it will be for firms to expand. D. how many funds people will earn on their stock market investments.

Economics