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Title: When housing prices ________, as they did beginning in 2006 following the housing market bubble, ... Post by: Kwilliams85 on Feb 26, 2018 When housing prices ________, as they did beginning in 2006 following the housing market bubble, consumption spending on furniture, appliances, and home improvements decline as many households find it ________ to borrow against the value of their
homes. A) rise; harder B) fall; harder C) fall; easier D) rise; easier Ques. 2 If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6. Indicate whether the statement is true or false Ques. 3 Between September 2007 and March 2008 there was a substantial reduction in the demand for housing. What action did the Fed take in response to the reduction in the demand for housing? A) The Federal Reserve cut the federal funds rate seven times. B) The Federal Reserve decreased the required reserve rate. C) The Federal Reserve raised the discount rate by 3 percentage points. D) The Fed conducted open market sales of Treasury securities. Ques. 4 What is the principle monetary policy tool used by the Fed. Why? What will be an ideal response? Ques. 5 The tax multiplier is smaller in absolute value than the government purchases multiplier because some portion of the A) decrease in taxes will be saved by households and not spent, and some portion will be spent on imported goods. B) increase in government purchases will be saved by households and not spent, and some portion will be spent on imported goods. C) decrease in taxes will be saved by households and not spent, and some portion will be spent on consumer durable goods. D) increase in government purchases will be saved by households and not spent, and some portion will be spent on consumer durable goods. Ques. 6 A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with highly independent central banks had ________ than countries whose central banks had little independence. A) lower unemployment rates B) higher unemployment rates C) higher inflation rates D) lower inflation rates Ques. 7 How effective is discount policy as compared to open market operations in managing the money supply? Explain how The Federal Reserve uses discount policy today. What will be an ideal response? Ques. 8 If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, how many American dollars are required to buy a product that costs 3.50 New Zealand dollars? A) 2.14 B) 2.24 C) 2.57 D) 4.76 Title: When housing prices ________, as they did beginning in 2006 following the housing market bubble, ... Post by: cryptokid on Feb 26, 2018 Content hidden
Title: When housing prices ________, as they did beginning in 2006 following the housing market bubble, ... Post by: Kwilliams85 on Feb 26, 2018 :white_check_mark: Will marking this solved...
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