When the Fed alters the types of assets it owns, it is engaging in
A) international balance management.
B) forward guidance.
C) quantitative easing.
D) changing the discount rate.
C
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According to Keynesian theory, the most important determinant of saving and consumption is
A) the stock of durable goods in the consumer's possession. B) the stock of liquid assets. C) the level of real disposable income. D) the level of consumer indebtedness.
Other things being equal, the lower the value of elasticity:
A. the more likely the profitability of a price increase. B. the less likely the profitability of a price increase. C. the greater the responsiveness in quantity demanded to a price change. D. the lower the corresponding increase in firm revenue.
Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will
A. import both goods. B. export both goods. C. export Good B, and import Good A. D. export Good A, and import Good B.
Which of the following will not tend to shift the consumption schedule upward?
A. A currently small stock of durable goods in the possession of consumers. B. The expectation of a future decline in the consumer price index. C. A currently low level of household debt. D. The expectation of future shortages of essential consumer goods.