If the Fed wants to implement expansionary monetary policy, it might:
A. sell government securities to reduce the federal funds rate.
B. buy government securities to increase the federal funds rate.
C. buy government securities to reduce the federal funds rate.
D. sell government securities to increase the federal funds rate.
Answer: C
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The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The price of cotton in Georgestan is
A) 30 cents per pound. B) 40 cents per pound. C) 60 cents per pound. D) 50 cents per pound.
Which one of the following is part of the official money supply in the United States?
a. Federal Reserve Notes. b. Gold bars. c. Common stock. d. Silver coins.
In the circular flow model, households:
a. Buy products and sell resources b. Sell products and buy resources c. Buy products and resources d. Sell products and resources
The federal funds market is the market where:
A. the federal government raises funds to cover its budget deficit. B. the Federal Reserve System makes loans to commercial banks. C. commercial banks with excess reserves make loans to commercial banks seeking reserves. D. commercial banks make loans to the Federal Reserve.