With the federal funds rate near zero and the economy still struggling, In response to already low interest rates doing little to stimulate the economy, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep
interest rates low. This policy is known as
A) quantitative easing. B) securities-bubble deflating.
C) contractionary monetary policy. D) inflation targeting.
A
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The practice of the only seller in a market charging a price at the highest level that would still inflict a loss on a new entrant into the market is called
A) limit pricing. B) collusive pricing. C) agile pricing. D) trigger pricing.
A monopolistically competitive firm finds its profit-maximizing rate of output by equating
A) the marginal revenue of advertising with the marginal cost of advertising. B) average revenue and average total cost. C) price and marginal cost. D) marginal revenue and marginal cost.
A situation in which the price charged is less than society's opportunity cost would lead to
A) too little being produced. B) too much being produced. C) an efficient amount being produced. D) marginal cost pricing.
In a proportional tax system each individual would pay the same dollar amount in taxes
a. True b. False Indicate whether the statement is true or false