If the Federal Reserve System buys government securities from commercial banks and the public:
A. commercial bank reserves will decline.
B. commercial bank reserves will be unaffected.
C. it will be easier to obtain loans at commercial banks.
D. the money supply will contract.
C. it will be easier to obtain loans at commercial banks.
You might also like to view...
Suppose all producers in a given industry charge exactly the same price for their product. Uniform prices across an industry proves
A) industry competetitiveness. B) industry monopolization. C) producers cannot be earning monopoly profits. D) absolutely nothing about whether the industry is adequately competitive.
If the payment stream of a bond remains the same and the price of the bond goes down, the
A) effective yield is unchanged. B) effective yield rises. C) effective yield decreases. D) bond is reissued to reflect the higher interest rate. E) bond is reissued to reflect the lower interest rate.
Suppose workers expect the inflation rate to be 3.6 percent and they receive a nominal wage increase of 7.5 percent. If the actual inflation rate turns out to be 2.8 percent, workers will receive a lower real wage than expected
a. True b. False Indicate whether the statement is true or false
An increase in the number of workers hired by a firm could result from
A. an increase in the real wage. B. a decrease in the marginal product of labor. C. a decrease in the marginal revenue product of labor. D. a decrease in the real wage.