With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?
A) Most of the resulting increase in the monetary base just flows into holdings of excess reserves.
B) Banks just add to their holdings of excess reserves instead of making loans.
C) The asset purchase program involves only the purchase of short-term government securities.
D) The asset purchase program involves only the purchase of long-term government securities.
D
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When current growth builds on past growth, growth is:
A) logarithmic. B) exponential. C) linear. D) negative.
The idea that policy actions have no real effects in the short run if they are anticipated and no real effects in the long run is called the
A) adaptive proposition. B) activism proposition. C) Keynesian proposition. D) policy irrelevance proposition.
One example of an optimal currency area is the states within the United States
Indicate whether the statement is true or false
Refer to the given data. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price must be lower than $4 because at $4:
A. both nations want to import steel.
B. both nations want to export steel.
C. Beta wants to export more than Alpha.
D. Alpha wants to import more than Beta.