The policy tool of "credit easing" refers to the
A) Fed's purchase of private securities to stimulate banks' lending.
B) Fed's requirement that the federal government must lend to directly to home buyers.
C) federal government's requirement that the Fed must lend directly to home buyers.
D) Fed's lowering of the federal funds rate to zero.
E) Treasury's issuance of federal debt to finance home buying.
A
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Which of the following is NOT related to fiscal policy?
A) increasing government expenditures B) decreasing marginal tax rates C) passage of new securities laws D) reducing the budget deficit
The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called
A) real GDP. B) nominal GDP. C) actual GDP. D) potential GDP.