When the United States engaged in quantitative easing from 2008 to 2014, why didn't the money supply rise sharply?
A. Foreigners wanted all the new dollars created by the Federal Reserve.
B. The Fed offset the increased monetary base by raising reserve requirements.
C. Banks held the increased monetary base as excess reserves.
D. The Fed offset the increased monetary base by buying foreign currency.
Answer: C
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A decrease in Swiss interest rates will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a
A) call option. B) put option. C) American option. D) European option.
Consumer equilibrium requires that the marginal utility per dollar spent be the same for all goods
a. True b. False Indicate whether the statement is true or false
Aggregate demand is reduced by
A. increased government spending. B. reduced taxes. C. decreased interest rates. D. a stronger dollar.