Which of the following increases when the Fed makes open-market sales?

a. currency and reserves
b. currency but not reserves
c. reserves but not currency
d. neither currency nor reserves


d

Economics

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Suppose there is a 5 percent increase in nominal demand in every industry in an economy. Factors that keep the price level from also rising by 5 percent are called

A) real rigidities. B) nominal rigidities. C) macroeconomic externalities. D) indexations.

Economics

Structural unemployment is often thought to explain relatively long spells of unemployment

a. True b. False Indicate whether the statement is true or false

Economics

There is an important role for government in a market capitalist economy.

a. true b. false

Economics

The formula ?q/?L represents

A. the average product of labor. B. the capital-to-labor ratio. C. total product. D. the marginal product of labor.

Economics