Why didn't the Fed's quantitative easing policies exert a stronger impact on aggregate demand and lead to a more rapid recovery during 2010-2012?
a. The low interest rates accompanying the policy failed to increase stock prices.
b. Even though the Fed made additional reserves available to the banking system, the policy did not result in lower interest rates.
c. The velocity of money increased, partially offsetting the impact of the Fed's low interest rate policy.
d. The earnings of senior citizens and others from money market accounts, saving deposits, and other forms of savings fell, reducing their incentive to spend and thereby increasing aggregate demand.
D
You might also like to view...
The U.S. can produce pizza for $7.50 each and barrels of beer for $37.50 each, and Germany can produce pizza for €5 each and barrels of beer for €15 each (€ is the symbol for the euro, the currency Germany uses). If the exchange rate is 1
50 $/€ then A) the U.S. has a comparative advantage in the production of beer. B) neither country has a comparative advantage in the production of beer. C) the U.S. has a comparative advantage in the production of pizza. D) the U.S. has a comparative advantage in the production of beer and pizza.
If a production possibility curve representing a trade-off between a grade in English and a grade in math has a negative slope, we know that:
A. there is an inverse relationship between grades in English and grades in math. B. there is a direct relationship between grades in English and grades in math. C. one can get better grades in English only if one gets better grades in math. D. there is no relationship between grades in English and grades in math.