Quantitative Easing May Work Because

question 7

Multiple Choice

Quantitative easing may work because

• A)interest rate increases are not an option.
• B)on net, this increases the effective quantity of liquid assets in the economy.
• C)the central bank says they will.
• D)open market operations always work at the zero lower bound.
• E)it eases the strain on the government surplus.

Recognize the Spearman rank-order correlation as a measure for ordinal data.

Distinguish between correlational statistics and correlational research.

Understand how sample size affects the interpretation of correlation analyses.

Understand the concept of a non-directional hypothesis in correlation analyses.

---

Definitions:

Financial Break-Even

The point at which total revenues equal total costs and expenses, leaving no net profit or loss.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture for the first time.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue.