When the Fed wants to expand the money supply through open market operation, it

a. sells government securities to the Treasury.
b. sells government securities to member banks.
c. buys government securities from member banks.
d. buys government securities from the Treasury.


c

Economics

You might also like to view...

Corporate governance refers to the way in which a corporation is structured and the effect that structure has on the corporation's behavior

Indicate whether the statement is true or false

Economics

If the price level in the United States is 110, the price level is 135 in Mexico, and the nominal exchange rate is 12.5 pesos per dollar, what is the real exchange rate from the U.S. perspective?

A) 8.8 B) 10.2 C) 10.8 D) 11.4

Economics

Real business cycle theory emphasizes the effect of ________ on economic performance

A) government spending B) the money supply C) aggregate supply shocks D) tax rates

Economics

All factors of production usually experience:

A. decreasing average variable cost. B. diminishing marginal productivity. C. decreasing average fixed costs. D. diminishing total productivity.

Economics