An open market sale of securities by the Fed

A) decreases banks' reserves and increases banks' securities.
B) increases banks' reserves and decreases banks' securities.
C) increases banks' total assets.
D) involves a bank selling government securities to the Fed.


A

Economics

You might also like to view...

Joan Jillson owns a coffee shop. Assume that the marginal product of the labor Joan employs (MPL) equals 500 cups per week and the marginal product of her shop's capital (MPK) equals 1,000

Assume also that the wage (w) Joan pays her workers equals $250 per week and the rental price (r) of her capital - her coffee machines - equals $500 per week. Which of the following correctly analyzes whether Joan is minimizing her costs? A) No, Joan is not minimizing her costs because MPL × w is less than MPK × r. B) No, Joan is not minimizing her costs because MPK is greater than MPL and r is greater than w. C) Yes, Joan is minimizing her costs because she is a price-taker in the markets for labor and capital. D) Yes, Joan is minimizing her costs because MPK/r equals MPL/w.

Economics

Cost-effectiveness considerations are more formally integrated into health policy making in

a. the UK b. Australia c. Europe d. Canada e. b, c, and d are correct

Economics

The restaurant market in San Francisco is probably best categorized as: a. perfectly competitive

b. monopolistic. c. monopolistically competitive. d. oligopolistic.

Economics

To make a tax system more progressive, policy makers could

A. Raise marginal tax rates for higher incomes. B. Narrow the tax base. C. Raise sales taxes on commonly purchased items. D. Allow all interest expenses to be deductible, not just interest on mortgages.

Economics