In the 1970s, in Response to Recessions Caused by an Increase

question 192

Multiple Choice

In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in many countries increased their money supplies. The central banks might have done this by

• A)selling bonds on the open market, which would have raised the value of money.
• B)purchasing bonds on the open market, which would have raised the value of money.
• C)Selling bonds on the open market, which would have raised the value of money.
• D)purchasing bonds on the open market, which would have lowered the value of money.

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Definitions:

Evolutionary Stable Strategy

A strategy in a game theoretical model that cannot be invaded by any alternate strategy if it is adopted by a population.

Saints

Individuals recognized for their holiness, virtue, and often miraculous deeds within many religious traditions, revered and often canonized after death.

Crooks

Persons who are dishonest or engage in illegal activities.

Time-Discounted Profits

The present value of profits expected in the future, adjusted for the time value of money.