Which of the following was a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?
a. The inflated price of Treasury bills made them too expensive to purchase in open market operations.
b. The large budget deficit constrained conventional monetary policy.
c. The U.S. Treasury was unable to sell Treasury bills in the primary market.
d. The Fed was able to act more quickly than Congress.
d
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Which of the following is true of a progressive tax system?
A) High income households pay a higher percentage of their income as taxes. B) Low income households pay a higher percentage of their income as taxes. C) All households pay the same amount of taxes irrespective of their income. D) All households pay the same percentage of their income as taxes.
The Laffer curve expresses a relationship between:
a. tax rates and tax revenues. b. inflation and unemployment. c. interest rates and saving. d. money supply and the price level.