The Federal Reserve conducted the policy of quantitative easing primarily when
A. the interest rate was relatively high.
B. the interest rate was very sensitive to the change in the money supply.
C. the interest rate was close to zero.
D. the interest rate was too erratic to be controlled.
Answer: C
You might also like to view...
In the ISLM framework, the impact of monetary policy on equilibrium income is less when
A) money demand = money supply. B) money demand is infinitely elastic. C) the interest rate is low. D) the investment function has lower interest-sensitivity.
In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of
a. the risks that a person voluntarily exposes herself to in her job and/or recreational choices. b. the value of each individual's assets. c. the belief that human life is priceless. d. the amount of resources required to adequately sustain life.
Rates of substitution are determined by:
A. the consumer's income. B. the consumer's preferences. C. the number of available consumption bundles. D. the prices of different goods.
You have noticed that your next-door neighbor, Mary, always works in the garden, and her husband, Joe, always walks the dog. You conclude that if Joe and Mary are efficient, then it must be the case that:
A. Mary has an absolute advantage in gardening. B. Joe experiences increasing opportunity costs when he gardens, but not when he walks the dog. C. Joe has a comparative advantage in walking the dog. D. Mary's opportunity cost of walking the dog is lower than Joe's.