When the Fed buys bonds, the money supply increases.
Answer the following statement true (T) or false (F)
True
When the Fed buys bonds, it injects reserves into the banking system, and reserves count as part of M1, a measure of the money supply.
You might also like to view...
The largest part of what the United States produces today is ________ such as ________
A) goods; food and electronic equipment B) goods; education and entertainment C) services; trade and health care D) services; textbooks and computers
The idea that an action should be undertaken if and only if the benefits exceed the costs is known as the concept of
a. economic efficiency. b. public welfare maximization. c. marginal comparative advantage. d. monetary construction of values.
Make a case for income inequality.
What will be an ideal response?
There is no trade-off between inflation and unemployment when expectations are ________ and policy changes are ________
A) adaptive; anticipated B) adaptive; unanticipated C) rational; anticipated D) rational unanticipated