What are some examples of the unconventional monetary policy from the Federal Reserve in response to the 2007-2009? Why were opponents concerned about these measures?
The unconventional monetary policy used by the Fed included purchasing assets other than Treasury bills, lending massive amounts to banks and other financial institutions, and participating in rescue operations for troubled financial institutions. Critics accused the Fed of overstepping its legal authority, making what should be political decisions, putting taxpayer money at risk without congressional appropriations, and sowing the seeds for future inflation.
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If the price of a barrel of oil is $100 this year and the interest rate is 10 percent, then according to the Hotelling Principle the price next year is expected to be ________ per barrel
A) $90 B) $110 C) $100 D) None of the above is correct.
A key difficulty facing insurance companies is that people know more about their health than do insurance companies, and that those people who are seriously ill are the most likely to want to obtain health insurance
What is this phenomenon called? A) asymmetric information B) moral hazard C) economic irrationality D) adverse selection
Use the following choices regarding the various types of unemployment to describe the following situation. After staying home for 23 years raising her four children, Susan has reentered the labor force looking for full-time employment.
A. Frictional unemployment B. Structural unemployment C. Natural unemployment D. Cyclical unemployment
According to both the equation of exchange and the quantity theory of money
A. an increase in the money supply will decrease real Gross Domestic Product (GDP). B. an increase in the money supply will increase real Gross Domestic Product (GDP). C. a decrease in the money supply will decrease the velocity of money. D. a decrease in the money supply will decrease the price level.