When the Fed sells Treasury Bonds on the open market, it will tend to
a. decrease the money supply and raise interest rates.
b. decrease the money supply and lower interest rates.
c. increase the money supply and raise interest rates.
d. increase the money supply and lower interest rates.
A
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If the Fed wished to decrease GDP, it could
A) increase the reserve requirement or conduct an open market sale. B) increase the reserve requirement or conduct an open market purchase. C) decrease the reserve requirement or conduct an open market sale. D) decrease the reserve requirement or conduct an open market purchase.
In the case of the Ford Pinto, Ford decided that
A) it would be cheaper to pay damages to families involved in crashes than to fix the problems with the Pinto. B) it would be more expensive to pay damages to families involved in crashes than to fix the problems with the Pinto. C) the problems with the Pinto could not be easily or cheaply fixed. D) it would not be held liable for damages caused by the Pinto and therefore had no reason to fix them.
The Keynesian model differs from the classical model in that
a. people do not have perfect information about the future in the Keynesian model. b. real wages are not flexible in the Keynesian model. c. monetary policy affects aggregate demand in the Keynesian model. d. expectations are crucial in the classical model. e. all of the above.
The US is experiencing a technological boom. Relative to the other countries with lower technological growth, we expect to see the dollar
a. Appreciate b. Depreciate c. Stay constant in value d. None of the above