One criticism of the Fed's policy of forward guidance during the recession of 2007-2009 is that it contributed to a prolonged period of abnormally low interest rates, leading to speculative bubbles in stocks or other financial assets as investors
A) delayed purchasing these assets until interest rates rose.
B) chose to sell off these assets due to the low returns on investment.
C) borrowed at these low interest rates to buy these assets.
D) switched from investing in these assets to assets with higher risks.
C
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Economists refer to the talents, training, and education of workers as
A. physical capital. B. average labor productivity. C. human capital. D. labor supply.
Whites receive nearly double the amount of on-the-job training as minorities
Indicate whether the statement is true or false
If the interest rate increases, then the:
a. economy will move to a new point along the existing consumption function. b. consumption function will shift up. c. consumption function will shift down. d. investment demand curve will shift up. e. economy will move to a new point along the existing investment demand curve.
Protesters insist that the economic benefits of trade have social costs that go unrecognized.
Whether or not you agree with them, make a list of those social costs.