In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy
B) targeting the fed funds rate
C) quantitative easing
D) targeting the inflation rate
C
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Suppose the Federal Reserve buys $50 million worth of securities from a commercial bank. As a result, the monetary base ________, and the quantity of money will ________ $50 million due to the ________
A) increases; increase by more than; money multiplier B) decreases; decrease by more than; money multiplier C) increases; increase by more than; expenditure multiplier D) decreases; decrease by less than; expenditure multiplier E) increases; decrease by; currency drain
What will happen to the equilibrium quantity and price of salmon in a competitive market when there is an equal decrease in demand and supply?
A. Equilibrium quantity and price will both increase B. Equilibrium quantity and price will both decrease C. Equilibrium quantity will decrease and equilibrium price will stay the same D. Equilibrium quantity will stay the same and equilibrium price will increase