« previous next »

Author Question: What is the appropriate monetary policy response to a situation with deficient financial liquidity, ... (Read 87 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?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Measuring Attachment Styles: The Strange Situation Experiment Measuring Attachment Styles: The Strange Situation Experiment
Family interactions change in response to the developing child, and parenting characteristics, such ... Family interactions change in response to the developing child, and parenting characteristics, such ...
The U.S. DOT hazardous materials placards as found in the 2012 Emergency Response Guidebook. ... The U.S. DOT hazardous materials placards as found in the 2012 Emergency Response Guidebook. ...
The Emergency Action Guide entry for styrene. Useful information includes emergency response ... The Emergency Action Guide entry for styrene. Useful information includes emergency response ...
Government in America: People, Politics, and Policy, AP Government in America: People, Politics, and Policy, AP
The origin of duplicated and deficient regions of chromosomes The origin of duplicated and deficient regions of chromosomes
Video: Acids and bases - definition

For a complete list of videos, visit our video library