An open-market sale of securities by the Fed results in ________ in reserves and ________ in the supply of money.
A. an increase; a decrease
B. a decrease; an increase
C. an increase; an increase
D. a decrease; a decrease
Answer: D
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Which of the following statements is correct?
What will be an ideal response?
According to the paradox of thrift, if households intend to save more, they will:
a) ultimately spend more. b) cause an increase in jobs because investment will increase. c) ultimately cause job losses. d) cause the GDP to increase because inflation will decrease.
What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business
What will be an ideal response?
Which statement is false?
A. Compared to 30 years ago, there is more sentiment in the U.S. for protection against the import of foreign goods. B. The basis for international trade is specialization. C. Our balance of trade has been negative since the early 1900s. D. None of these statements are true.