The buying and selling of government securities by the Fed is known as:
a. open market operations.
b. federal bond operations.
c. treasury bond operations.
d. open bonds operations.
e. discount rate operations.
a
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Starting at full employment, a business cycle can be described by the following sequence: ________ equilibrium, ________ equilibrium, ________ equilibrium
A) full-employment; below full-employment; above full-employment B) below full-employment; full-employment; above full-employment C) above full-employment; below full-employment; full-employment D) below full-employment; full-employment; below full-employment
During the 1930s, banks found it hard to solve the asymmetric information problem between borrowers and lenders, because ____
a. Many borrowers lacked adequate collateral b. Changing federal bank regulations created uncertainty c. The fall in the stock of money reduced aggregate demand d. Interest rates had fallen to "liquidity trap" levels