To move quickly to turn around the crisis during 2007-2008, the U.S. Federal Reserve relied on:
a. lowering taxes.
b. removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers.
b. tightening up credit rules and keeping banks out of trouble.
d. admonishing the administration for its excessive debt situation.
Ans: b. removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers.
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When the SRAS curve slopes upward, the actual affect of an increase in real autonomous spending on equilibrium real GDP is smaller than predicted by the multiplier because
A) the price level rises B) the price level falls. C) real GDP increases. D) real GDP decreases.
A physical examination is NOT a good screening device for life insurance companies if
A) life-threatening diseases are usually undetected. B) doctors cannot be easily bribed to write a good report. C) medical history is a good predictor of life expectancy. D) one's current state of health is a good predictor of life expectancy.