ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Real government purchases may fall when the price level rises if which of the following is true?
Group of answer choices
A. Some parts of the government budget are fixed in nominal terms.
B. All parts of the government budget are fixed in real terms.
C. Governments always buy the same quantity of goods and services regardless of how much they cost.
D. Governments prefer more expensive goods to less expensive goods because they create more jobs.
Quantitative easing involves which of the following?
Group of answer choices
A. The use of open-market operations to increase the quantity of reserves held by the commercial banks
B. The use of open-market operations to increase the quantity of reserves held by the Fed
C. The reduction of reserves held by the commercial banks
D. The reduction of the discount rate in order to stimulate lending by commercial banks
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