Which of the following reduced the demand stimulus effects of monetary policy during the years following the 2008-2009 recession?
a. Failure of the Fed to provide sufficient reserves to the banking system for the extension of new loans.
b. A substantial reduction in the velocity of money resulting from the historically low interest rates.
c. The Fed's high interest rate policy that reduced private investment.
d. Inability of the Fed to gain approval from Congress to purchase assets other than bonds issued by the federal government.
B
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Which of the following statements is true?
A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good. B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good. C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good. D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
Export embargoes cause greater losses to consumer surplus in the target country
A) the lesser its initial dependence on foreign produced goods. B) the more elastic is the target country's demand schedule. C) the more elastic is the target country's domestic supply. D) the more inelastic the target country's supply. E) the larger the target country's labor force is.
Per-unit transaction costs
a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents. b. refer only to the commission paid to a third party for each transaction made. c. are absorbed by the party seeking the transaction. d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.
The four phases of a single business cycle are, in order, the trough, followed by a recovery, then a recession, ending with a peak
a. True b. False Indicate whether the statement is true or false