When the Fed embarked on a policy known as quantitative easing, they
A) reduced the required reserve ratio by one-quarter point per month for 12 months.
B) bought longer-term securities than are usually bought in open market operations.
C) opened up lending to primary dealers, commercial banks, and investment banks.
D) slowly lowered the federal funds rate target until it was equal to zero.
B
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Real GDP per person in the United States was $9,864 in 1950. Over the next 48 years, it grew at a compound annual rate of 2.0%. If, instead, real GDP per person had grown at an average compound annual rate 2.5%, then real GDP per capita in the United States in 1998 would have been approximately ________ larger.
A. $12,530 B. $25,520 C. $6,751 D. $2,370
Following the balance of payments ________.
A. allows us to track changes in trade flows, but not financial assets B. is useful for understanding a country's relationships with its trading partners C. is not helpful because the balance of payments is always zero D. helps predict when an economy will be in a recession
According to economists, which of the following acts was partially responsible for the Great Depression of the 1930s?
a. The Robinson-Patman Act b. The National Recovery Act c. The Smoot-Hawley Tariff Act d. The Sarbanes-Oxley Act e. The Sherman Antitrust Act
If, with a single unit of labor, a country can produce more of both clothing and computers than another country, economics suggests that there is no opportunity for mutually beneficial trade between the countries.
Answer the following statement true (T) or false (F)