Fixing the insolvency problem caused by the Great Recession, the U.S. Federal Reserve as reluctant to purchase toxic assets from banks because:
a. It would transfer the problem to the Federal Reserve but might not solve the underlying causes.
b. Toxic security purchases had to be funded, and the Fed already had a major debt problem.
c.The Fed could be accused of nationalizing the U.S. financial system.
d. All of the above.
.A
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A tariff imposed on foreign imports will cause _____
a. demand for imports to increase b. domestic prices of imported goods to rise c. market supply of importable goods to increase d. domestic prices of imported goods to fall e. market supply of domestic goods to decline
The table below gives the quantities and prices for 2005 and 2015 for an economy that produces just two goods: sailboats and coconuts. Quantities ProducedPrices?2005201520052015Sailboats1020$500$525Coconuts2,0002,400$1$2 For this economy that produces just sailboats and coconuts, and with 2005 as the base year, nominal GDP was approximately ________ times larger in 2015 than it was in 2005.
A. 2.19 B. 1.34 C. 1.65 D. 1.77