Which of the following is correct?
a. If the Fed purchases bonds in the open market, then the money supply curve shifts right. A change in the price level does not shift the money supply curve.
b. If the Fed sells bonds in the open market, then the money supply curve shifts right. A change in the price level does not shift the money supply curve.
c. If the Fed purchases bonds, then the money supply curve shifts right. An increase in the price level shifts the money supply curve right.
d. If the Fed sells bonds, then the money supply curve shifts right. A decrease in the price level shifts the money supply curve right.
a
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Compensation of employees is the largest component of national income
Indicate whether the statement is true or false
Which of the following participants in the working of a firm are referred to as residual claimants?
A) workers B) managers C) entrepreneurs D) all of the above
When several resources are combined in the production of a good,
a. it is easy to determine the marginal products of the various resources b. the marginal contribution of each input often cannot be observed c. allocating revenue among the various resources is easy d. there is more competition for each of the resources used e. there is less competition for each of the resources used
When economists say that private investment is "autonomous," they mean that it:
a. will never change. b. is not dependent on the current level of disposable income. c. is determined by the "animal spirits" of business decision makers. d. is determined by the level of saving.