When the Federal Reserve sells $100 worth of government securities, bank reserves
A) rise by $100.
B) rise by $100 times the deposit expansion multiplier.
C) fall by $100.
D) fall by $100 times the deposit expansion multiplier.
C
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Claims that economic agents have against banks are known as:
A) assets. B) capital. C) deposits. D) liabilities.
The problem with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services
Indicate whether the statement is true or false
When full employment is present in the United States:
a. the rate of unemployment will fall to zero. b. the actual rate of unemployment will be less than the natural rate of unemployment. c. approximately 95 percent of the adult population will be employed. d. approximately 95 percent of the labor force will be employed.
Which of the following goods will have the most elastic demand at any time?
a. coffee b. gasoline c. restaurant meals d. insulin