When the Fed increases the money supply by buying Treasury securities, it will
a. decrease short-term interest rates to a greater degree than long-term interest rates.
b. decrease long-term interest rates to a greater degree than short-term interest rates.
c. increase short-term interest rates to a greater degree than long-term interest rates.
d. increase long-term interest rates to a greater degree than short-term interest rates.
A
You might also like to view...
Monopolies misallocate resources because
A) price does not equal marginal cost. B) price does not equal average variable cost. C) marginal cost does not equal average total cost. D) profits are usually positive.
Which of the following tools of commercial policy yields a revenue to the government?
a. Quota b. Tariff c. Export subsidy d. Government procurement policy e. Health and safety standards
_____ represents the relation between total expenditures, or total spending, and the price level
a. Gross National Product b. Inflation c. Real Gross Domestic Product d. Aggregate supply e. Aggregate demand
Profits are zero when __________ = ___________ = ___________.
Fill in the blank(s) with the appropriate word(s).