The Federal Reserve conducted the policy of quantitative easing primarily when
A) the interest rate was very sensitive to the change in the money supply.
B) the interest rate was close to zero.
C) the interest rate was relatively high.
D) the interest rate was too erratic to be controlled.
B
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The income effect due to a price decrease will result in an increase in the quantity demanded for
A) an inferior good. B) a public good. C) a Giffen good. D) a normal good.
Which of the following will lower interest rates in the short run?
a. an increase in reserve requirements b. open market sales by the Fed c. a decrease in real GDP d. an increase in the price level
Southwest monitors competition closely and it still has the lowest price in any given market about ___% of the time.
Fill in the blank(s) with the appropriate word(s).
The government can deal with the effects of the decline in wealth, without causing new problems down the road.
Answer the following statement true (T) or false (F)