Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?
a. The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession.
b. The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession.
c. The Fed introduced several new procedures for the conduct of monetary policy and it increased the monetary base rapidly as the recession worsened.
d. The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.
C
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If a country wants to keep the value of its currency fixed, then its central bank should
A) sell domestic goods when there is an increase in the supply of its domestic currency. B) buy domestic goods when there is an increase in the supply of its domestic currency. C) sell its domestic currency when there is an increase in the supply of that currency. D) buy its domestic currency when there is an increase in the supply of that currency.
The ________ is the most widely traded currency in the world.
A) pound B) yen C) euro D) U.S. dollar
Critics contend that imposing a minimum wage higher than the equilibrium wage in a competitive industry would:
A. Decrease the number of workers employed in that industry B. Decrease the quantity of labor supplied to that industry C. Increase the demand for labor in the industry D. Increase employment in that industry
Refer to the below graph of the market for wheat. The government adopts a price support program for wheat, and supports the wheat price at P2. The area Q1ABQ2 represents the:
A. Parity ratio
B. Taxpayers' burden
C. Efficiency gain
D. Efficiency loss