When the Fed embarked on a policy known as quantitative easing, they
A) reduced the required reserve ratio by one-quarter point per month for 12 months.
B) bought longer-term securities than are usually bought in open market operations.
C) opened up lending to primary dealers, commercial banks, and investment banks.
D) slowly lowered the federal funds rate target until it was equal to zero.
B
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One of the major complaints about state lotteries is that they are played primarily by the poor. Hence, because lotteries do not pay out in prizes as much as they take in as revenue, this way of raising state revenue is:
A. progressive. B. retroactive. C. regressive. D. reactionary.
One lesson that Akerlof's Lemons model provides is:
A. that for high quality providers to survive they must provide a way that customers can distinguish high quality from low quality. B. low quality will not survive in a market. C. moral hazard is unavoidable. D. people always prefer high quality to low quality goods.