If the Fed decides to engage in an open market operation to increase the money supply, what will it do?
a. Sell Treasury bonds, bills, or notes on the bond market.
b. Buy Treasury bonds, bills, or notes on the bond market.
c. Increase the required reserve ratio.
d. Increase the fed funds rate.
b
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Everything else held constant, if aggregate output is to the ________ of the LM curve, then there is an excess ________ of money which will cause the interest rate to fall
A) right; supply B) right; demand C) left; supply D) left; demand
If there are zero implicit costs, accounting profits _________economic profits
a. Are greater than b. Are equal to c. Are less than d. Have no inherent relationship to
Which of the following is likely to affect the position and shape of society's production possibilities frontier?
a. volume of physical resources b. level of labor skills c. level of technology d. amount of factories on hand e. All of the above are correct.
The MPC can be used to predict the effect of a tax increase
a. True b. False Indicate whether the statement is true or false