When the Federal Reserve sells bonds as a part of a contractionary monetary? policy, there? is:
A. A decrease in the money supply and a decrease in interest rate
B. A decrease in the money supply and an increase in interest rate
C. An increase in the money supply and a decrease in interest rate
Ans: B. A decrease in the money supply and an increase in interest rate
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Real GDP is the dollar value of all goods and services produced in an economy.
Answer the following statement true (T) or false (F)
Refer to the graph below. A minimum wage in this labor market would
a. cause some layoffs as the quantity demanded for workers falls.
b. create some unemployment as a result of an increase in the quantity supplied of labor looking for a job.
c. create a surplus of labor in this market.
d. All of the above.
An expansion in a country's capital stock is associated with a(n) _____
a. increase in potential GDP b. decline in future consumption c. increase in human capital d. decline in the rate of investment e. increase in national debt
An increase in the budget deficit causes net capital outflow to
a. rise, because the supply of loanable funds shifts right. b. rise, because the demand for loanable funds shifts right. c. fall, because the supply of loanable funds shifts left. d. fall, because the demand for loanable funds shifts right.