Suppose the Fed conducts an open market purchase of bonds. This monetary policy action will tend to cause
A) the price of bonds to increase, and the interest rate to increase.
B) the price of bonds to increase, and the interest rate to decrease.
C) the price of bonds to decrease, and the interest rate to increase.
D) the price of bonds to decrease, and the interest rate to decrease.
B
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Property rights are social facts because
A) they are created and enforced by government. B) they are widely distributed throughout society. C) they depend upon other people's acceptance of corresponding obligations. D) they must be held in common to be effective.
Which of the following is the largest measure of money in the United States?
A) Federal Reserve notes B) definitive money C) M1 D) M2
Holding other factors constant, decreasing the amount and duration of unemployment benefits would likely
A) decrease cyclical unemployment and the natural rate of unemployment. B) increase structural unemployment and the natural rate of unemployment. C) increase frictional unemployment and the natural rate of unemployment. D) decrease the natural rate of unemployment.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises
and GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.