Quantitative easing is:
A. asset purchases that shift the composition of the Fed's balance sheet.
B. expansion of the demand for aggregate reserves to drive down the IOER.
C. statements today about policy targets in the future.
D. expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target.
Answer: D
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Describe how a pollution-control authority might use an emissions permits system to reduce pollution.
What will be an ideal response?
Which of the following most clearly illustrates the concept of derived demand?
a. An increase in the price of steak causes the demand for poultry to increase. b. An increase in the demand for new houses leads to an increase in the demand for construction workers. c. An increase in consumer income leads to an increase in the demand for services provided by the government. d. An increase in the demand for new cars causes the demand for used automobiles to rise.
______________ is the total quantity of a good provided in a given period.
Fill in the blank(s) with the appropriate word(s).
Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is ?2 and the price elasticity of demand for Group 2 is ?1.2. Based on this information alone we can conclude that the price charged to Group 2 will be:
A. higher than the price charged to Group 1. B. the same as the price charged to Group 1. C. lower than the price charged to Group 1. D. There is insufficient information to determine whether Group 2 will have a higher, lower, or the same price as Group 1.