If the Fed buys a U.S. government bond from a member of the public,
a. the banking system has more reserves and the money supply tends to grow.
b. the banking system has less reserves and the money supply tends to grow.
c. the banking system has more reserves and the money supply tends to fall.
d. the banking system has less reserves and the money supply tends to fall.
a
You might also like to view...
The figure above shows the labor market in a region. In which of the following cases would the amount of unemployment be the largest?
A) when the market is at its equilibrium, with no minimum wage B) when a minimum wage of $4 an hour is imposed C) when a minimum wage of $6 an hour is imposed D) when a minimum wage of $8 an hour is imposed E) None of the above because the market will adjust so that there is no unemployment.
The demand for most products varies directly with changes in consumer incomes. Such products are known as:
A. complementary goods. B. competitive goods. C. inferior goods. D. normal goods.
Refer to the above table. If the price of the product is $1.50, what is the marginal revenue product of the 12th worker?
A. $1.50 B. $135 C. $1035 D. $90
The 1996 Farm Act
A. Reduced loan rates. B. Increased the amount of set-aside acreage. C. Called for a phaseout of farm subsidies. D. Increased government support prices.