What is meant by the term "credit easing"?
A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity.
B) It is a strategy which involves keeping interest rates very low by providing substantial reserves
for as long as is necessary to avoid deflation and encourage spending.
C) It is a strategy which involves lowering the required reserve ratio and lowering the federal funds
rate to encourage banks to increase loan creation.
D) It is a strategy which involves allowing interest rates to rise slowly by providing substantial
reserves for as long as is necessary to avoid inflation.
Ans: A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity.
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According to Chamberlin, the fact that in the long run average total cost exceeds its minimum value under monopolistic competition is
A) the social cost of monopolistic competition. B) the most important reason for why monopolistic competition is not efficient. C) part of the cost of producing different products for consumers. D) actually beneficial because it makes adjustments easier when demand increases.
Which of the following actions can prevent migration of individuals from one health insurance policy to another?
a. Lowering the opportunity costs of switching from one policy to another. b. Fixing a uniform premium rate for all individuals under one type of policy. c. Conducting an interview of the people before placing them under different policies. d. Setting up a norm requiring all individuals to purchase the same coverage.