The Fed's open market operations normally involve only the purchase of government securities, particularly those that are short-term. However, during the crisis, the Fed started new programs to purchase
A) mortgage-backed securities and long-term Treasuries.
B) mortgage-backed securities and Treasury bills.
C) commercial papers and short-term Treasuries.
D) Treasury bills and Treasury notes.
A
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If a firm in a perfectly competitive industry introduces a lower-cost way of producing an existing product, the firm will be able to earn economic profits in the long run
Indicate whether the statement is true or false
Banks
A) provide a channel for linking those who want to save with those who want to invest. B) produce nothing of value and are therefore a drain on society's resources. C) are the only financial institutions allowed to give loans. D) hold very little of the average American's wealth.
Diversification is determined by adding value
Indicate whether the statement is true or false
Discuss the rule of law and why it is important. Contrast life in a country where the rule of law is enforced with life in a country where it is not and explain how this impacts economic growth.
What will be an ideal response?