7. Recent monetary policy of the United States Which of the following are factors that contributed to the housing bubble of 2002-2006? Check all that apply. Low inflation A high federal funds rate Abundant and easily available credit from government-sponsored mortgage lenders An economic recession Quantitative easing of 2008 resulted in 7. Recent monetary policy of the United States Which of the following are factors that contributed to the housing bubble of 2002-2006? Check all that apply. Low inflation A high federal funds rate Abundant and easily available An economic recession Quantitative easing of 2008 resulted in a slow growth and high inflation a high growth and low inflation a high growth and low unemployment a slow growth and high unemployment 7. Recent monetary policy of the United States which can be explained by resulted in gage lenders I which can be explained by Which of the following are factors that contributed to the housing bubble of 2002-2006? Check all that apply. Low inflation A high federal funds rate Abundant and easily available credit from government-sponsored mortgage lenders a low velocity of money ssion a high velocity of money which can be explained by

7. Recent monetary policy of the United States Which of the following are factors that contributed to the housing bubble of 2002-2006? Check all that apply. Low inflation A high federal funds rate Abundant and easily available credit from government-sponsored mortgage lenders An economic recession Quantitative easing of 2008 resulted in 7. Recent monetary policy of the United States Which of the following are factors that contributed to the housing bubble of 2002-2006? Check all that apply. Low inflation A high federal funds rate Abundant and easily available An economic recession Quantitative easing of 2008 resulted in a slow growth and high inflation a high growth and low inflation a high growth and low unemployment a slow growth and high unemployment 7. Recent monetary policy of the United States which can be explained by resulted in gage lenders I which can be explained by Which of the following are factors that contributed to the housing bubble of 2002-2006? Check all that apply. Low inflation A high federal funds rate Abundant and easily available credit from government-sponsored mortgage lenders a low velocity of money ssion a high velocity of money which can be explained by

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Quantitative easing can be described as A, B, C OR D ONE ANSWER A the purchase of long-term government and private mortgage backed securities by central banks to make credit available so as to stimulate aggregate demand. B the purchase of long-term government and private mortgage backed securities by central banks to make credit less available so as to stimulate aggregate demand. C the buy back long-term government and private mortgage backed securities by central banks to make credit available so as to decrease aggregate demand. D the buy back long-term government and private mortgage backed securities by central banks to make credit less available so as to decrease aggregate demand.
16. Which of the following is true? a. The Great Depression was caused in part by “the liquidity trap.” b. The Great Depression illustrated why the “Paradox of Thrift” is important for understanding the macroeconomy. c. The Great Depression proved that savings do not equal investment because of pessimistic animal spirits. d. The price system in the capital market (the real interest rate) was sabotaged by a structurally unsound central banking system. e. The Great Depression was caused in part by runaway greed among the business owners of the time.
24. A flat reduction of $ 2,500,000 in income taxes will increase disposable income by exactly $ 2,500,000. True or false 30. Congress plays an important role in monetary policy decision-making. The main role of the president is limited to appointing the members and the president of the Board of Governors. True or false 31. A common market is a group of countries that have little or no trade restrictions between them. True or false
32. Trade restrictions discriminate against foreign producers and benefit economic progress. True or false 36. The government's responsibility for stabilizing the value of the monetary unit involves _________________________________. Response option group a. the application of appropriate fiscal policies and effective control over the money supply b. the application of appropriate fiscal policies c. the application of appropriate fiscal policies and effective control over money demand d. effective control over money supply and demand 37. Which of the following results can be attributed to sound fiscal policy? Response option group a. higher budget deficit b. higher unemployment c. higher price levels d. more jobs
9. According to the quantity theory of money, the Fed could combat inflation by: Multiple Choice decreasing the supply of money. increasing taxes. increasing the supply of money. reducing taxes. 10. The real interest rate is: Multiple Choice adjusted for inflation. the amount of interest the bank pays you for saving or charges you for borrowing. the federal funds rate. the actual average interest rate in the economy. 11. Suppose the annual nominal interest rate is 10 percent and the inflation rate is 6 percent. If you deposit $1,000, at the end of the year: Multiple Choice your purchasing power will have increased. your savings will have nominal increased by $100. you will have earned a real rate of return of 4 percent. All of these statements are true.
Generally speaking, ____ favors borrowers over lenders because as time passes they are able to pay back their debts with currency that is _____ valuable as it was at the time of the loan. a.Inflation, less b.Nominal GDP, more c.Deflation, less d.Velocity of money, less
Use the Front Page to answer three questions. FRONT PAGE Fed Raises Key Interest Rate Washington D.C.-The Fed, as expected, raised the target rate on federal funds from 2.25 to 2.5 percent today. Fed chair Jay Powell said the economy appeared "healthy" and "solid" enough to accommodate a small increase in interest rates. The Fed's goal is to keep inflation under control as the economy continues to grow and unemployment falls to historic levels. President Trump reacted immediately to the Fed action, calling it "foolish" and "crazy" - an impediment to stronger growth and still more jobs. Source: News reports of December 19-20, 2018. Instructions: Round your response to two decimal places. a. What was the Fed's target for the fed funds rate in late December 2018? % b. This was (Click to select) from the previous period. c. This rate change would (Click to select) aggregate demand.
The Federal Reserve's Federal Open Market Committee engages in open market operations, which is Select one: a. attempting to alter the interest rate when banks borrow and lend from each other. b. changing the interest rate that banks pay when they borrow from the Fed. C. the buying and selling of government bonds to affect the money supply. d. adjusting the interest rate that the Fed pays on excess reserves.