According to this Application, economist John Taylor believes that if the Fed had not followed "easy money" policy during the early 2000s,
A) housing starts would have declined quicker, accelerating the timing and severity of the housing bust.
B) housing starts would have been much higher and the housing boom would have continued.
C) housing starts would have been much lower and the housing boom and bust would have been avoided.
D) housing starts would have stabilized, leading to a mild housing boom with no bust.
C
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Refer to Table 18.1. The opportunity cost of a hat in Panama is
A) 1/2 of a glove. B) 3/4 of a glove. C) 4/3 gloves. D) 2 gloves.
Which of the following is true about price discrimination? a. When there are a number of competing firms, price discrimination is less likely because competitors tend to undercut the high prices charged those discriminated against. b. A profit-maximizing seller will charge a higher price for those with a greater willingness to pay, and a lower price for demanders with a lower willingness to
pay. c. Price differentials between groups will erode if reselling is easy. d. All of the above are true of price discrimination.
Suppose the official unemployment rate is 10 percent. We can conclude without question that:
a. one of every 10 people in the civilian labor force is currently unemployed. b. the same 10 percent of the people in the economy were out of work for the entire year. c. every person in the civilian labor force was out of work for 10 percent of the year. d. the same 10 percent of the people in the civilian labor force were out of work for the entire year.
If there are ten plants producing the total domestic consumption of the product and each plant is operating at minimum efficient scale, then each plant accounts for what percentage of domestic consumption?
A. 5 percent B. 10 percent C. 20 percent D. 25 percent