Bank reserves will increase over time when:

a. the Fed sells government securities on the open market.
b. the Treasury sells government securities on the open market.
c. depositors take funds out of their checkable deposit accounts.
d. the Fed buys government securities on the open market.
e. the Fed lowers the discount rate.


d

Economics

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A) contractionary; increase B) expansionary; increase C) expansionary; decrease D) contractionary; decrease

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The winner of a sealed-bid first-price auction is the participant who bid the ________ and pays the amount of the ________.

A) highest; second-highest bid B) highest; bid C) second-highest; bid D) second-highest; second-highest bid

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Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?

A) Consumers pay all of the excise tax. B) Producers pay all of the excise tax. C) Consumers and producers share the excise tax equally. D) Neither consumers nor producers pay the excise tax.

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Economics