When the Fed Increases the Quantity of Assets It Owns,it

question 92

Multiple Choice

When the Fed increases the quantity of assets it owns,it is said to be engaging in

• A)credit easing.
• B)forward guidance.
• C)quantitative easing.
• D)a maturity extension program.

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Definitions:

Purely Competitive Market

A market framework where numerous buyers and sellers exist, there's unrestricted access and departure, and the product is uniform, which results in participants accepting the market price as given.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, providing a measure of the true economic performance of a venture.

Purely Competitive Market

A market structure characterized by a large number of small firms selling identical products, with no single firm able to influence market prices.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.