Author Question: The key difference between quantitative easing and credit easing is that ________. A) the goal of ... (Read 58 times)

darbym82 · **on:** Jun 30, 2018

The key difference between quantitative easing and credit easing is that ________.

A) the goal of the former is to raise expected inflation
B) the latter refers to a substantial change in the composition of the central bank's balance sheet
C) the latter refers to a substantial expansion of the central bank's balance sheet
D) the former is endorsed by Federal Reserve Chairman Ben Bernanke, while the latter was devised by Japan's Prime Minister Shinzo Abe
E) none of the above

Question 2

Assume that an economy is in equilibrium when technological progress causes an increase in total factor productivity.

Once the economy has adjusted to its new equilibrium, and assuming that the supplies of capital and labor remain unchanged, which of the following has increased? A) the real wage
B) the share of capital income in national income
C) the share of labor income in national income
D) all of the above
E) none of the above