This Application refers to quantitative easing, a policy that occurs when the Fed
A) changes the reserve requirement. B) purchases long-term securities.
C) raises the discount rate. D) sells mortgage-backed securities.
B
Economics
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A one-year bond has an interest rate of 3% and is expected to fall to 2.5% next year and 2% in two years. The term premium for a two-year bond is 0.3% and for a three-year bond is 0.5%
What are the interest rates on a two-year bond and three-year bond according to the liquidity premium theory?
Economics
In the 19th century hospitals had notorious reputations—questionable places to visit, risky places to stay. What advances changed all this?
a. Development of the germ theory of disease. b. Advances in medical technology. c. Availability of health insurance to pay the bills. d. All of the above.
Economics