The Fed purchases of long-term assets to stabilize financial markets, reduce long-term interest rates, and improve the investment environment are called:
a. structural adjustments.
b. financial strengthening.
c. quantitative easing

The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, there is

A) a shortage of 3,000 units of rental housing. B) a shortage of 6,000 units of rental housing. C) a surplus of 3,000 units of rental housing. D) neither a shortage nor a surplus of rental housing.

Keynes assumed that wages and prices were slow to adjust in order to explain

A) persistently high unemployment. B) high inflation. C) the high level of interest rates. D) why inflation fell in recessions.