When the Fed _______ governments bonds it _______ bank reserves.
A) sells; increases
B) buys; increases
C) buys; decreases
D) issues new; increases
Ans: B) buys; increases
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Everything else remaining unchanged, what is likely to happen to the equilibrium quantity of credit and the real interest rate if:
a. the credit demand curve shifts to the right? b. the credit supply curve shifts to the left? What will be an ideal response?
Explain ways in which the government can remedy an externality
What will be an ideal response?
It is likely that ______________ has an income elasticity less than 1, and _____________ have an income elasticity more than 1.
A. coffee; sailboats B. sailboats; cars C. vacations; cell phones D. filet mignon; chicken
Which of the following statements about technology is true?
a. It is a sufficient but not necessary condition for economic growth. b. Management techniques are irrelevant to technological growth. c. Industrial countries follow the lead of developing countries in implementing new technology. d. Technological change is inversely related to a nation's ability to save. e. Low levels of education can impede technological progress.