A consequence of an incentive contract for employees is that
a. employees must incur additional risk
b. employee level risk is reduced
c. employer level risk is reduced
d. there are no risk related consequences
a
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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.
For an economy starting at potential output, a decrease in planned investment in the short run results in a(n):
A. increase in potential output. B. decrease in potential output. C. recessionary output gap. D. expansionary output gap.