Which of the Following Is Likely to Happen Because of Quantitative

question 100

Multiple Choice

Which of the following is likely to happen because of quantitative easing by the Fed?

• A) A rightward shift of the demand curve for bank reserves
• B) A leftward shift of the demand curve for bank reserves
• C) A rightward shift of the supply curve of bank reserves
• D) A leftward shift of the supply curve of bank reserves

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Definitions:

Production Possibilities Frontier

A curve depicting all the possible combinations of two goods that can be produced within a given set of resources and technology level.

Marginal Utility

The extra pleasure or benefit derived from using an additional unit of a product or service.

Marginal Rates

The additional cost or benefit associated with a small incremental increase in a unit of activity.

Utilities Possibilities Frontier

A concept in economics that represents all possible allocations of utility or satisfaction among different goods and services for a particular consumer or society, graphically.