Inflation must be high in Moscow because it is very expensive to live there.

How do firms respond to unplanned inventory changes? What is the effect on their production and GDP?

What will be an ideal response?

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.