Which of the following reduced the demand stimulus effects of the Fed's low interest rate policy pursued during, and after, the financial crisis of 2008-2009?
a. Declining stock prices during 2010-2012.
b. A reduction in the velocity of money.
c. An increase in earnings derived from money market accounts, saving deposits, and similar saving instruments.
d. A sharp increase in the rate of inflation during 2009-2012.
B
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According to the CPI basket, the largest item in the households' budgets is
A) apparel. B) education. C) food. D) transportation. E) housing.
The excise tax on bourbon as described in the diagram is ultimately paid:
In the graph above:
S0 = supply curve for bourbon (seller's supply)
D = demand curve for bourbon
St = supply for bourbon plus excise tax on bourbon
(effective supply as seen by buyers)
tax = an excise tax on bourbon (of $20 per case)
A. By buyers only
B. By sellers only
C. 40 percent by buyers and 60 percent by sellers
D. 60 percent by buyers and 40 percent by sellers