To lower the federal funds rate, the Fed conducts an open market ________ of securities which ________
A) purchase; increases the demand for reserves
B) sale; increases the supply of reserves
C) purchase; decreases the demand for reserves
D) sale; increases the demand for reserves
E) None of the above answers is correct.
E
You might also like to view...
In the above figure, in order to achieve efficiency, a tax of ________ per unit is needed
A) $3 B) $6 C) $0 D) $2
What was the Bretton Woods agreement about? Why did it break down? Briefly explain
What will be an ideal response?
inflation is
What will be an ideal response?
The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $1,000, all else constant, quantity demanded will ________ by ________ units.
A. decrease; 500 units B. decrease; 1200 units C. increase; 500 units D. decrease; 320 units E. increase; 3.2 units