During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?
a. the federal funds rate had already been increased as much as possible
b. the discount rate had already been increased as much as possible
c. the federal funds rate had already been reduced to zero
d. the discount rate had already been reduced to zero
c
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The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The deadweight loss when the market has a monopoly producer is
A) ace. B) abf. C) bcd. D) bcef. E) acd.
Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
A. The law of diminishing marginal utility. B. The law of diminishing returns. C. Return equalization principle. D. The principal-agent problem.
If the price elasticity of demand is zero for all prices, the demand curve is
A. horizontal. B. vertical. C. neither horizontal nor vertical.
Two variables are said to be negatively correlated if their values
A. tend to move in opposite directions. B. only decrease but never increase. C. tend to move in the same direction. D. are always negative.