Quantitative easing involves policies that are designed to:
A. directly increase the money supply by a certain amount.
B. indirectly increase the money supply by decreasing interest rates.
C. directly increase aggregate demand through increased government spending.
D. indirectly increase aggregate demand through decreased taxes.
A. directly increase the money supply by a certain amount.
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When compared with a perfectly competitive market with identical costs of production, a pure monopoly will produce ________.
A. more output and charge the same price B. less output and charge the same price C. less output and charge a higher price D. more output and charge a higher price
Which of the following was NOT cited as contributing to unusual uncertainty having an adverse effect on aggregate supply?
A) the possibility that Congress may let the 2001, 2003 tax cuts to expire B) the Fed's limited use of monetary policy in fighting the recession C) the severity of the financial crisis D) concern that the Affordable Care Act would increase the cost of hiring workers
When Costa Rica's resources are not fully employed, then relative to its production possibilities curve, the point representing its production position is located
a. somewhere outside (exterior to) the curve b. somewhere along the curve because it still has choice among those production possibilities combinations c. somewhere inside (interior to) the curve d. on a new production possibilities curve that is closer to the origin e. on a new production possibilities curve that is further from the origin
Provide examples and explain reform measures that have been suggested to reduce the possibility and frequency of international financial crises.
What will be an ideal response?