The process of buying financial assets to stimulate the economy when the central bank target interest rate is near or at zero and the interest rate cannot be lowered further is called:
a. bond-trading.
b. quantitative bidding.
c. open market purchase.
d. quantitative easing.
e. open market sale.
Question 2
If many more home sellers and builders have become more eager to sell their homes, we would expect to see:
a. an increase in equilibrium price and an increase in equilibrium quantity of homes sold.
b. an increase in equilibrium price and a decrease in equilibrium quantity of homes sold.
c. a decrease in equilibrium price and an increase in equilibrium quantity of homes sold.
d. a decrease in equilibrium price and a decrease in equilibrium quantity of homes sold.
Buying a Telescope
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