In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase.
B) The monetary base would decrease.
C) The monetary base would not change.
D) While the monetary base would change, it is impossible to predict in which direction.
A
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If a price ceiling is set above the equilibrium price, then
A) there will be a surplus of the good. B) there will be a shortage of the good. C) there will be neither a shortage nor a surplus of the good. D) the price ceiling will generate revenue for the government. E) the price ceiling affects suppliers but not demanders.
Macroeconomics is concerned with
A) individual business firms. B) specific industries. C) individual consumers. D) a nation's entire economy.
Which nation achieved the ideal communist society as described by Marx?
a. Castro's Cuba b. Stalin's Soviet Union c. No nation has achieved Marx's vision of communist society. d. Mao's China
When constructing economic models, economists are more concerned with
A. what people think than what they need. B. what people say than how they act. C. what people say than what they do. D. what people do than what they say.