Quantitative easing involves the Fed swapping:
A. money for assets other than T-bills.
B. money for T-bills.
C. T-bills for different T-bills.
D. T-bills for assets other than T-bills.
Ans: A. money for assets other than T-bills.
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Which of the following did not contribute to the severity of the Great Depression?
a. a sharp reduction in the money supply during the early 1930s b. a large tax increase (to balance the budget) in the early 1930s c. substantial increases in the tariff rates on imported goods d. a reduction in government expenditures and a substantial cut in personal income tax rates during 1932 and again in 1936
Refer to the diagram and assume that price increases from $2 to $10. The coefficient of price elasticity of demand (midpoint formula) relating to this change in price is about:
A. .25 and demand is inelastic.
B. 1.5 and demand is elastic.
C. 1 and demand is unit elastic.
D. .67 and demand is inelastic.