If the money supply curve is vertical, an increase in bond interest rates
A) is likely to cause banks to supply more money.
B) is likely to cause banks to supply less money.
C) has no effect on the money supply.
D) is likely to cause the Federal Reserve to increase the money supply.
Ans: C) has no effect on the money supply.
You might also like to view...
Third-degree price discrimination for concessions at ball parks is not applied to adults and children because_____.
A. children's demand for food is elastic and adults' demand for food is inelastic B. there can be exchange of the products from children, who could buy them at a lower price, to adults C. adults' demand for food is elastic and children's demand for food is inelastic D. there can be exchange of the products from adults, who could buy them at a lower price, to children
An appreciation of the U.S. dollar would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called:
A. amortization B. discounting C. compounding D. accounting
Which of the following is a characteristic of a more efficient tax system?
a. The system minimizes deadweight loss. b. The system raises the same amount of revenue at a lower cost. c. The system minimizes administrative burdens. d. All of the above are correct.