After Two Rounds of Quantitative Easing in Response to the 2007-2009

question 33

Multiple Choice

After two rounds of quantitative easing in response to the 2007-2009 financial crisis, the money supply was _______ the pre-crisis amount.

• A) more than triple
• B) nearly double
• C) approximately the same as
• D) about half of

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Definitions:

Long Run

Describes a period in which all factors of production and costs are variable, allowing for the adjustment of all inputs and technology by firms.

Fixed Resource

Refers to a factor of production that remains constant, regardless of the level of output or activity in the short term.

Short-Run Adjustment

A temporary change in production or operation to respond to immediate changes in market or environmental conditions.

Additional Bakers

Implies an increase in the number of bakers in a market or industry, potentially increasing the supply of baked goods.