________ Occurs When a Central Bank Purchases Assets with the Intention

question 33

Multiple Choice

________ occurs when a central bank purchases assets with the intention not of lowering the short-term interest rate,which is already at zero,but with the purpose of increasing bank reserves.

• A)Quantitative easing
• B)Fiscal incrementing
• C)Loan originating
• D)Fiscal easing

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Definitions:

Short-Run Phenomenon

An event or circumstance that occurs and resolves within a brief period, affecting economic variables temporarily.

Classical Region

In economic theory, a phase where the supply of labor is abundant and the wage rates are therefore determined by the cost of living, not by the demand for labor.

Aggregate Supply Curve

An economic curve illustrating the overall supply of goods and services by all businesses and the government at various overall price levels in a given period.

Maximum Output Level

refers to the highest amount of production a company can achieve with the current resources and technology.