If the Fed wishes to increase the money supply, it can:
A. sell a bond to bank, and take the money it receives in exchange out of circulation in the economy.
B. buy bonds from a bank, giving the bank cash in return, which it can then lend out.
C. sell a bond to a bank, and take the money it receives and lend it out to someone else.
D. buy a bond from a bank, requiring the bank to hold the money it receives as excess reserves.
B. buy bonds from a bank, giving the bank cash in return, which it can then lend out.
You might also like to view...
The production possibilities frontier is used by economists to depict
A) the strictly financial costs of production. B) the opportunity costs of production. C) the strictly financial benefits of production. D) the opportunity benefits of production.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. At the end of the day, if Jerry was efficient with his resources, he could have produced:
A. 12 dishes and 0 fences. B. 10 dishes and 2 fences. C. 8 dishes and 2 fences. D. 6 dishes and 2 fences.
Zero pollution represents an efficiency standard
a. True b. False Indicate whether the statement is true or false
Markets exist to facilitate exchange between people.
Answer the following statement true (T) or false (F)