If the Fed sells bonds through its open market operations, then there is
A) a decrease in interest rates because of the increase in the supply of bonds.
B) an increase in the demand for bonds and a rise in the price of existing bonds.
C) a decrease in interest rates because of the decrease in the demand for bonds.
D) an increase in the supply of bonds and a fall in the price of existing bonds.
D
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Endogenous growth theory tries to explain why
A) the growth rate of technological change varies across countries. B) capital is not subject to diminishing marginal returns. C) total factor productivity is the only determinant of labor productivity. D) balanced growth occurs in all economies.
Regarding the costs of regulation, which is a FALSE statement?
A) Airline safety standards have increased the price of air travel. B) Automobile safety standards raise the price of cars. C) Regulatory spending by federal agencies has decreased since 1970. D) Pharmaceutical manufacturing safety standards raise the price of drugs.
Suppose that a university charges students a $100 "tax" to register for business classes. The next year the university raises the "tax" to $150 . The deadweight loss from the "tax" triples
a. True b. False Indicate whether the statement is true or false
If the CPI was 68 in 1965 and is 285 today, then $100 today purchases the same amount of goods and services as
a. $23.86 purchased in 1965. b. $32.47 purchased in 1965. c. $68.00 purchased in 1965. d. $419.12 purchased in 1965.