Expansionary monetary policy increases bank reserves and the money supply, also decreases interest rates.
Answer the following statement true (T) or false (F)
True
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During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ________ the money supply, which will put ________ pressure on nominal interest rates.
A. decrease; upward B. decrease; downward C. increase; downward D. increase; upward
Linking policy instruments to target variables are the
A) indices of economic welfare. B) structural economic relations. C) exogenous nonpolicy variables. D) irrelevant side effects.
What leads to chronic deficits on U.S. current account?
a. declining value of the dollar and uncertainty about its future b. devaluation of the dollar c. imports being greater than exports year after year d. foreigners buying up U.S. assets in the U.S. year after year e. more exports and fewer imports year after year
Which statement is true?
A. Most U.S. workers are members of labor unions. B. Union membership has been hurt in recent decades by the decline in manufacturing. C. The union movement is most powerful in the South. D. None of these statements are true.