« previous next »

Author Question: What is the appropriate monetary policy response to a situation with deficient financial liquidity, ... (Read 86 times)

jon_i

  • Hero Member
  • *****
  • Posts: 549
on: Jun 30, 2018
What is the appropriate monetary policy response to a situation with deficient financial liquidity, when there is a liquidity trap?
 
  A) an open market sale of government bonds
  B) a decrease in the interest rate on reserves
  C) an open market purchase of government bonds
  D) an increase in the interest rate on reserves

Question 2

The recession of 2008-2009 demonstrated that ________.
 
  A) consumption is especially sensitive to changes in the retirement age
  B) changes in wealth can be a major source of fluctuations in consumption
  C) as consumers get older, they tend to exhaust all their savings
  D) permanent income is something of a misnomer


elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

jon_i

  • Hero Member
  • *****
  • Posts: 549
Reply #2 on: Jun 30, 2018
Thank you


elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Varicosis. (a) Varicose veins develop due to the failure of valves in the superficial veins of the l Varicosis. (a) Varicose veins develop due to the failure of valves in the superficial veins of the l
IgE Response IgE Response
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Cancer Survival Rates According to Psychological Response to Diagnosis Cancer Survival Rates According to Psychological Response to Diagnosis
Immune Response to a Food Allergen Immune Response to a Food Allergen
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Video: What are the Parts of a Plant Cell?

For a complete list of videos, visit our video library