When the Fed lowered short-term interest rates to near zero but the policy didn't seem to stimulate the economy enough, the Fed in 2009 also began conducting the policy of expansive buying of bonds now known as:
A. ZIRP (zero interest rate policy)
B. QE (quantitative easing)
C. Operation Twist
D. Zero Lower Bound
B. QE (quantitative easing)
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Juan and Sophia have decided to stop studying economics and get a bite to eat. Juan wants to go for a pizza and Sophia wants a hamburger. They decide to go for pizza. What can we conclude from this?
A) Juan always gets more utility from pizza than Sophia does. B) Sophia gets less utility from pizza than she could from a hamburger. C) Sophia will get negative utility from the pizza. D) Utility analysis does not work here since Sophia did not eat a hamburger.
The most established theory of stock prices relates a company's asset prices to:
A) future earning prospects of companies and future values of inflation rates. B) the future value of inflation and interest rates. C) past earnings of companies and past values of interest rates. D) future earning prospects of companies and future values of interest rates.
Why do perfectly competitive firms maximize their profits by producing so that the price is equal to marginal cost, but monopolists maximize their profits by setting a price that is greater than marginal cost?
What will be an ideal response?
An employee who retains earned pension benefits after leaving a job has a pension plan that is
A) whole life. B) guaranteed. C) vested. D) funded.