When the Federal Reserve buys new government bonds, it is borrowing from the government

a. True
b. False


B

Economics

You might also like to view...

Which of these government financing methods is generally the least inflationary?

A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public

Economics

The Lehman Brothers bankruptcy triggered a financial panic that featured

a. an increase in Treasury interest rates and an increase in most other interest rates. b. an increase in Treasury interest rates and a decrease in most other interest rates. c. a decrease in Treasury interest rates and an increase in most other interest rates. d. a decrease in Treasury interest rates and a decrease in most other interest rates.

Economics

The conventional monetary policy to fight inflation would be to

A. increase the rate of monetary growth. B. decrease the rate of monetary growth. C. run budget deficits. D. run budget surpluses.

Economics

Which of the following is most necessary for a monopolist to survive in the long run?

A) a legal protection from entry B) a perfect product C) a brilliant Chief Operating Officer D) an excellent marketing campaign

Economics