Fed purchases of bonds from the public, called open market operations:
A. tend to increase reserves in the system leading to reductions in interest rates.
B. tend to reduce the money supply because the bonds are expensive to purchase.
C. tend to reduce reserves in the banking system because all the Fed gets is more bonds.
D. tend to increase bond prices but generally have no effect on bank reserves.
A. tend to increase reserves in the system leading to reductions in interest rates.
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An entrepreneur is:
a. an employee in a factory. b. the manager of a factory. c. the person who conceives and starts a business. d. the person who contracts to work for a specific price. e. the person who does not assume any risk in business.
Unlimited liability explains why
a. bondholders don't buy stock b. many proprietors are reluctant to expand their businesses c. banks are reluctant to lend money to corporations d. sole proprietors prefer not to incorporate e. many businesses go bankrupt
Industrialized countries generally have higher levels of educational attainment compared with poorer countries.
Answer the following statement true (T) or false (F)
As the multiplier process works through time, the size of the multiplier effect becomes
A. larger. B. smaller. C. constant. D. explosive.