Which of the following will happen when the Federal Reserve buys bonds from the public in the open market and the amount of cash held by the public does not change?
A. The required reserve ratio will increase.
B. The money supply will decrease.
C. The deposits of commercial banks will decline.
D. Commercial bank reserves will increase.
D. Commercial bank reserves will increase.
You might also like to view...
In what ways do economists and policymakers who believe that the federal government should have a larger role in the health care system criticize the Patient Protection and Affordable Care Act (ACA)?
What will be an ideal response?
Opportunity Cost:
A. only includes explicit, out of pocket expenses. B. is the value of your next best alternative. C. is never provided in dollar values. D. would not include lost wages from working when deciding to take a vacation.
An increase in the government budget deficit causes national saving to _____, the interest rate to _____, and investment to _____
Fill in the blank(s) with correct word
Exhibit 7-15 Long-run average cost
If the firm represented in Exhibit 7-15 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:
A. 500 units per week. B. 1,000 units per week. C. 1,500 units per week. D. 2,000 units per week.