The finance of government spending through a Treasury sale of bonds which are then purchased by the Fed
A) causes both reserves and the monetary base to rise.
B) causes both reserves and the monetary base to decline.
C) causes reserves to rise, but the monetary base to decline.
D) has no net effect on the monetary base.
A
You might also like to view...
Refer to the scenario above. If both the firms are optimizing, which of the following statements is true?
A) Firm B will produce more than Firm A. B) Firm A will produce more than Firm B. C) Both firms will produce the same quantity. D) The quantity produced by both firms will depend on the demand for pens and not the marginal costs.
In the above figure, the line represented by the "1" is the
A) average fixed cost. B) marginal revenue. C) total cost. D) average total cost.
Figure 16.1A firm that generates pollution is illustrated in Figure 16.1. If the government imposes a pollution tax equal to P2, and the firm's abatement level is A3, the firm is:
A. abating more than is optimal for the firm. B. abating less than is optimal for the firm. C. choosing an abatement level that is optimal. D. violating the environmental protection laws.
Which statement is false?
A. When two countries trade, both gain from the trade. B. In international trade some countries are winners and others are losers. C. For most of the 20th century we had a positive balance of trade. D. None of these statements are false.