Author Question: Illustrate the effect of the Fed purchasing 50 million worth of mortgage-backed securities on the ... (Read 86 times)

@Brianna17

  • Hero Member
  • *****
  • Posts: 550
Illustrate the effect of the Fed purchasing 50 million worth of mortgage-backed securities on the Fed's balance sheet.
 
  What will be an ideal response?

Question 2

A ten percent increase in total factor productivity A will increase ________.
 
  A) the marginal product of capital (MPK) by ten percent
  B) the marginal product of labor (MPL) by ten percent
  C) output by ten percent
  D) all of the above
  E) none of the above



bassamabas

  • Sr. Member
  • ****
  • Posts: 294
Answer to Question 1

The Fed's assets increase as it acquires 50 million worth of securities and its liabilities increase by 50 million due to an increase in reserves.

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

For a complete list of videos, visit our video library