In response to the financial crisis and the Great Recession, the Fed took the following actions, except:
A. Reduced the federal funds rate to practically zero
B. Lowered the required reserve ratio
C. Initiated a few rounds of quantitative easing
D. Engaged in a policy of forward commitment
B. Lowered the required reserve ratio
You might also like to view...
Using the Lorenz curve, the degree of income inequality is measured by
a. The line connecting all points for which a given percentage of families receives exactly the cumulative percentage of income b. the distance of the Lorenz curve from the line of perfect equality c. the flat diagonal line that applies to a perfectly elastic demand curve d. the number of times the Lorenz curve crosses the line of perfect equality e. is derived by dividing the number of people below the poverty line by the total population
In the analysis of potential GDP, labor and capital are considered
A. inputs. B. final goods and services. C. byproducts of economic growth. D. outputs.
Because resources are limited:
A. only the very wealthy can get everything they want. B. firms will be forced out of business. C. the availability of goods will be limited but the availability of services will not. D. people must make choices.
Refer to the above figure. How do you describe what is happening as the economy moves from point C to point B?
A. The economy has increased its wool production by 30 bales at an opportunity cost of 250 loaves of bread. B. Previously unemployed resources are now being devoted to the production of wool. C. Previously unemployed resources are now being devoted to the production of bread. D. The economy has acquired new resources for making bread.