Author Question: In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three ... (Read 114 times)

tsand2

  • Hero Member
  • *****
  • Posts: 520
In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of quantitative easing, where the Fed purchased billions of dollars of securities.
 
  What impact would quantitative easing have on the monetary base? A) The monetary base would increase.
  B) The monetary base would decrease.
  C) The monetary base would not change.
  D) While the monetary base would change, it is impossible to predict in which direction.

Question 2

A higher saving rate leads to faster growth because
 
  A) more saving produces greater additions to capital per hour of labor, raising real GDP per person.
  B) capital would wear out faster.
  C) people could consume more of an economy's output.
  D) population growth would accelerate.



vseab

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

For a complete list of videos, visit our video library