A sale of bonds by the Fed generates

A. a decrease in the demand for money balances.
B. an increase in the demand for money balances.
C. an increase in the supply of bonds and a fall in bond prices.
D. an increase in the demand for bonds and a rise in bond prices.


Answer: C

Economics

You might also like to view...

All of the following actions are potential rule -of-reason violations except which one?

A) an agreement with a competitor firm to adjust output levels B) an exclusive dealings contract with a customer C) an agreement with a customer about the resale price the customer will charge for the product D) a tying sale with a customer

Economics

The market system provides a way

a. to allow specialization and exchange to work in tandem. b. to improve the well-being of mankind. c. to harness self-interest. d. to allocate goods and services. e. All of the above are correct.

Economics

Which of the following transactions would be included in this year's GDP?

a. Noah purchases a five-year-old house from William. b. Noah rents a five-year-old house from William. c. Noah purchases 100 shares of AT&T stock from William. d. Noah purchases an antique at William's garage sale.

Economics

As the supervisor concerned, how would you mediate the conflict that is developing within your team?

What will be an ideal response?

Economics