Author Question: Quantitative easing by the Fed refers to A) the creation of bank reserves by engaging in ... (Read 35 times)

jayhills49 · **on:** Jun 29, 2018

Quantitative easing by the Fed refers to

A) the creation of bank reserves by engaging in large-scale open market operation at very low interest rates.
B) decreasing the money supply during a recession to prevent inflation.
C) selling private securities issued by the Fed.
D) lowering the federal funds rate while increasing the discount rate.
E) lowering the required reserve ratio to zero percent.

Question 2

A free lunch (the absence of a tradeoff) when the production of a good is increased is possible for the entire economy only if

A) resources are used inefficiently.
B) there is a movement along the PPF.
C) prices are decreased.
D) prices are increased.
E) less of some product is produced.