We would expect which of the following to occur when the central bank conducts an open market purchase of bonds?
A) a reduction in the monetary base (H)
B) a reduction in the money multiplier
C) an increase in the money multiplier
D) an increase in the money supply
D
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If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?
A) 30 percent B) 13.6 percent C) 12.2 percent D) 20 percent
According to Nobel laureate Douglass North, one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government
Indicate whether the statement is true or false
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The GDP Price Index falls, and reserve-related (central bank) transactions remain the same. e. The GDP Price Index and reserve-related (central bank) transactions remain the same.
Suppose the issuer of a bond fails to pay some of the interest or principal that was promised to the bondholders. This failure is referred to as a
a. breach. b. default. c. risk. d. term failure.