When the Fed purchases federal government bonds in the open market
A. the demand for money expands.
B. there is no change in the money supply.
C. the money supply expands.
D. the money supply contracts.
Answer: C
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The marginal social benefit of air quality
a. declines as air quality increases b. rises as air quality increases c. remains constant as air quality increases d. first falls then rises as air quality increases e. is always negative
When P = $65, the quantity demanded of a good is 80 units, and the quantity supplied of the good is 40 units. For every $10 increase in the price of this good, quantity demanded falls by 10 units and quantity supplied rises by 10 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units
A) $55; 30 B) $75; 50 C) $75; 70 D) $85; 50 E) $85; 60
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output, which of the following is true? A firm will:
A. plan to exit the industry in the long run if price falls below $15. B. continue to operate in the short run if price is below $11. C. will earn maximum profits at a quantity of 35. D. make positive profits any time the price is greater than $11.
A central bank can help stop a bank panic by
A) raising the required reserve ratio. B) calling in consumer loans. C) acting as a lender of last resort. D) decreasing income taxes.