If the Federal Open Market Committee wants to decrease the money supply through open market operations it will
A) buy U.S. Treasury Securities.
B) sell U.S. Treasury Securities.
C) increase the discount rate.
D) decrease the discount rate.
Answer: B
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Capital goods are
A. long-lived goods used for producing other goods and services. B. excluded from GDP. C. the end products of production. D. publicly provided.
The above figure shows the demand and supply curves for housing. What would be the effects of a rent ceiling equal to $500 per month?
A) a surplus equal to 3,000 apartments B) a shortage equal to 3,000 apartments C) a shortage equal to 250 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
The government is looking to double the living standards of its population in 18 years, what rate of GDP growth would it need to achieve that?
a. 1% b. 2% c. 3% d. 4%
The long-run aggregate supply curve will shift to the right if the:
A. potential output of the economy expands. B. economy loses productive capacity. C. economy experiences a supply shock. D. profit levels of firms increase.