The increasing attractiveness of a variety of liquid financial assets has caused the
A) velocity of M1 to rise.
B) demand for M1 to rise.
C) velocity of M1 to decline.
D) supply of M1 to decline.
A
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QE3 followed QE2 and Operation Twist. Which of the following best explains how QE3 differed from the other two in order to make it more effective?
A. QE3 promised a much larger expansion of reserves. B. QE3 gave a much stronger forward commitment as to when the policy would be complete. C. QE3 carried much more force in getting banks to lend reserves. D. QE3's completion was tied to economic objectives, rather than specific dates.
In the U.S. market economy, the government performs the following prominent roles, except:
A. Provide public goods and services B. Promote economic stability and growth C. Set prices for most resources D. Modifies the distribution of income