If the Fed buys government bonds on the open market, which of the following is likely to occur?
A. The money supply will expand.
B. The market rate of interest on government bonds will increase.
C. The market rate of interest on corporate bonds will increase.
D. The amount of investment spending will decrease.
A. The money supply will expand.
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All else equal, forecasting your firm's demand is likely to be less profitable if any of the following are true except for which one?
A) It is difficult to obtain an accurate forecast of your firm's demand. B) Your firm experiences small fluctuations in demand. C) A change in your output level leads to a large change in the firm's marginal cost. D) A change in your output level leads to a small change in the firm's marginal cost.
A one-time increase in the price level of oil followed by a one-time increase in aggregate demand produce...
What will be an ideal response?
Other things equal, a decrease in the personal income tax rate will ________ disposable income, which leads to ________ in output and employment
A) increase; an increase B) increase; a decrease C) decrease; an increase D) decrease; a decrease
If the value of the cross elasticity of demand is negative, the two goods are
A) complementary goods. B) substitute goods. C) normal goods. D) inferior goods.