In utilizing unconventional monetary policy in 2010, the Federal Reserve purchased
A. real estate worth more than $2 trillion.
B. $800 billion in Treasury bills.
C. over $1 trillion in mortgage backed securities.
D. $600 billion in long-term Treasury bonds.
Answer: D
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The quantity theory of money and prices assumes
A) the price level is increasing at a constant rate. B) the price level is constant. C) real output is constant. D) velocity is constant.
Suppose that short-term real interest rates fall in Japan. Is this likely to be good news or bad news for the tourism industry in Hawaii?
What will be an ideal response?
Toyota's just-in-time system is an example of
A) backward (upstream) integration. B) quasi-vertical integration. C) using transfer pricing to avoid price controls. D) horizontal, downstream integration.
If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account, _____
a. the money supply will not increase as much as it would had borrowers deposited all of the money b. the money supply will remain unchanged c. the money supply will decrease as much as it would had borrowers deposited all the money d. the banking system will collapse e. the economy will experience a recession