When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A) qualitative easing.
B) quantitative easing.
C) qualitative tightening.
D) quantitative tightening.
B
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Comment on the following statement: "Even though the supply of land is perfectly inelastic, the supply of land in a given use may not be fixed."
What will be an ideal response?
Economists who are in favor of an increase in the size and scope of government tend to prefer ________________ when expansionary _______________ policy is needed to raise aggregate demand
A) tax cuts; fiscal B) tax cuts; monetary C) more government spending; fiscal D) more government spending; monetary
Based on export ratios, which of the following countries is closest to being a closed economy?
A. Belgium. B. Samoa. C. Saudi Arabia. D. China.
Some people who believe monetary policymakers should not address equity and property price bubbles argue their position based on:
A. price bubbles are virtually impossible to identify when they are developing. B. their belief that government should stay out of private matters. C. the policymakers lack experience with financial markets. D. all of the answers given are correct.