If the Fed sells government bonds, bank reserves will
A) decrease leading to a decrease in the money supply.
B) increase leading to a decrease in the money supply.
C) increase leading to an increase in the money supply.
D) decrease leading to an increase in the money supply.
Ans: A) decrease leading to a decrease in the money supply.
You might also like to view...
If Intel moves first and makes a large investment in a chip fabrication plant in Bolivia in exchange for tax credits, Intel has made ________ and Bolivia ________
A) a tactical error; will nationalize the plant B) a specific investment; will create the tax credit C) a specific investment; has a hostage D) a general investment; no longer has to grant the tax credits
Which of the following annual real GDP growth rates would be needed just to maintain output per capita in the United States?
a. 10.0 percent b. 2.5 percent c. 1.0 percent d. 7.0 percent e. 3.5 percent
Which of the following assets decreases the most in purchasing power during inflation?
A. government bonds B. real estate C. savings account money D. cash
When workers boycott a company because it does business with a firm whose employees are on strike, that is a
A) secondary boycott. B) primary boycott. C) strike. D) sympathy strike.