A central bank's purchase of securities made by writing checks on itself will:
A. have no impact at all on the balance sheet.
B. only change the composition of its assets.
C. decrease the size of its balance sheet.
D. increase the size of their balance sheet.
Answer: D
You might also like to view...
Does a tax on sellers affect the supply curve?
A. Yes, it shifts to the left by the amount of the tax.
B. Yes, it shifts to the right by the amount of the tax.
C. Yes, it shifts up by the amount of the tax.
D. No, there is change in the quantity supplied, but the supply curve does not move.
An increase in government spending
a. increases the interest rate and so investment spending increases. b. increases the interest rate and so investment spending decreases. c. decreases the interest rate and so increases investment spending increases. d. decreases the interest rate and so investment spending decreases.
In a two time-period example, economic efficiency is maximized when
a. The marginal net benefits are maximized in both time periods b. The discount rate is set equal to the marginal benefits c. The marginal net benefit in the first time period is set equal to the present value of marginal net benefits in the second time period d. The marginal net benefits in the first period are set equal to the discount rate in the second time period e. The marginal net benefits in the first period are set equal to the user costs in the second time period
According to the World Bank, nearly 40 percent of the people on earth subsist on incomes of less than $3 per day.
Answer the following statement true (T) or false (F)