In 2008, the Fed followed an expansionary monetary policy, which was evident by the:
A. decrease in the repo rate from 4 percent in January to 0.25 percent in December.
B. increase in the discount rate and decrease in the Fed fund rate by the same amount.
C. increase in the federal funds rate from 0.25 percent in January to 4 percent in December.
D. decrease in the federal funds rate from 4 percent in January to 0.25 percent in December.
Answer: D
You might also like to view...
A standard definition of recession is
A) a period of expansion in many sectors of the economy. B) an increase in GDP that lasts for at least 6 months. C) a decrease in GDP that lasts for at least 6 months. D) an increase in unemployment from one month to the next. E) a period of time when the unemployment rate exceeds 6.5 percent.
If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
Which group or groups buy U.S. public debt?
a. Government agencies b. Private individuals c. Private institutions d. All of the above.
What is scarcity and why does it exist? How is scarcity related to the study of economics?
What will be an ideal response?