When the Federal Reserve sells a government bond to a primary dealer, reserves in the banking system ________ and the monetary base ________, everything else held constant
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
D
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A key assumption of the public choice model is that government policymakers will pursue their own self-interests
Economists assume that consumers and firms pursue their own self-interests when they interact in competitive markets and this interaction results in efficient economic outcomes. Does the pursuit of self-interest by policymakers result in efficient economic outcomes?
Industries that are truly critical to the national defense should be protected from foreign competition if that is the only way to ensure their existence
a. True b. False Indicate whether the statement is true or false
In the long run, entry ensures that the typical monopolistically competitive firm will
a. produce at minimum efficient scale b. earn an economic profit c. earn a normal profit d. price its output at marginal cost e. standardize its product
Reserves are ________.
What will be an ideal response?