If the Fed sells Treasury bills then
A. the price of Treasury bills will fall.
B. the market rate of interest on Treasury bills will rise.
C. both the price of Treasury bills will fall and the market rate of interest on Treasury bills will rise.
D. neither the price nor the market rate of interest of Treasury bills will be affected.
C. both the price of Treasury bills will fall and the market rate of interest on Treasury bills will rise.
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If the marginal leakage rate is 0.2, then a $300 fall in autonomous planned expenditures will shift the IS curve leftward by the amount of
A) $300. B) $1500. C) $75. D) $600.
Technological efficiency is
A) a necessary and sufficient condition for profit maximization. B) a sufficient but not necessary condition for profit maximization. C) a necessary but not sufficient condition for profit maximization. D) a theoretical construct with little connection to the real world.
Society definitely benefits by reducing the number of monopolistically competitive firms.
Answer the following statement true (T) or false (F)
Functional finance is:
A. a theoretical proposition, not a moral proposition. B. a proposition supported by public choice economists. C. based on empirical evidence that fiscal policy can be effective in smoothing business cycles. D. based on the political realities of voters wanting their government to respond to recessions.