The Fed followed a precommitment policy when it promised to keep short-term interest rates low for a period of time after the 2008/09 U.S. recession.
Answer the following statement true (T) or false (F)
True
A precommitment policy is a policy to pursue a particular action for a period of time. This precommitment policy was designed to assure investors that short-term rates would not rise, and this assuaged fears that there would be losses on low-interest rate bonds.
You might also like to view...
If additional units of a good could be produced at an increasing opportunity cost, the production possibilities frontier would be linear
Indicate whether the statement is true or false
In Chinese coastal provinces, brick housing for a fast expanding middle class is very comparable in size to housing in the U.S. for a family with median income of $51,000 because
a. median income per capita has risen in China to nearly equal median income in the U.S. b. the Chinese government builds much of the housing in China c. construction companies have begun to migrate to the coastal provinces of China d. housing is an income inferior good e. bricks, trade skill workers and construction labor are very cheap in China
The Federal Reserve System is a branch of the Treasury Department
a. True b. False Indicate whether the statement is true or false
Congressperson A: "If you approve that new water treatment plant in my district, I'll vote to keep the Air Force base open in your district." Congressperson B: "It's a deal." This is an example of
A) logrolling. B) lobbying. C) median voting. D) logtumbling.