By the standard of low-grade bonds, interest rates were ________ and monetary policy was ________ during the Great Depression
A) low; tight
B) low; easy
C) high; tight
D) high; easy
C
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How is the federal funds rate determined in the market for reserves?
What will be an ideal response?
What are the primary arguments in favor of a rules approach, and what are the primary arguments in favor of a discretion approach?
What will be an ideal response?
In the simultaneous move labor negotiation game:
a. Neither party prefers bargaining hard in the Nash equilibrium b. Both the parties want to end up in the least efficient outcome c. Both parties bargain hard in the Nash equilibrium d. Both parties want to stay in the prisoner's dilemma
From the end of 2005 to the end of 2006, the United States ran a deficit of about $309 billion. The debt at the start of this period was about $4,592 billion. Which of the following combinations of inflation and real GDP growth would have allowed the government to run this deficit while keeping the ratio of real GDP to the debt about the same?
a. about 3% inflation and about 2.2% real GDP growth b. about 3% inflation and about 3.2% real GDP growth c. about 3.4% inflation and about 3.3% real GDP growth d. about 3.4% inflation and about 4% real GDP growth