If the Fed buys a U.S. Treasury bill from a member of the public, the banking system has
A. less reserves and the money supply tends to fall.
B. more reserves and the money supply tends to fall.
C. less reserves and the money supply tends to grow.
D. more reserves and the money supply tends to grow.
Answer: D
You might also like to view...
Under the rational expectations hypothesis, which of the following is the most likely effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain; in the long run, it will remain unchanged.
If it is assumed that people vote for the candidate who comes closer to matching their own views, then
A) candidates will label themselves as right-wingers. B) candidates will label themselves as left-wingers. C) candidates will label their opponents as middle-of-the-roaders. D) candidates will discuss the means to accomplishing ends. E) a candidate who is trailing in the polls will modify his or her position to become more like his or her opponent.
John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, then his expected wealth equals
A) $0. B) $10,000. C) $15,000. D) $20,000.
For an increasing cost industry, the long-run supply curve has a(n) _____ elasticity of supply
a. infinite b. negative c. positive d. zero