When the Fed purchases government securities from a commercial bank, the bank
A. loses its ability to make loans.
B. automatically becomes poorer.
C. loses equity in the Fed.
D. receives reserves that can be loaned out.
Answer: D
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a. below average b. only average c. above average d. indeterminate
After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?
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Monetarists believe that an increase in the money supply shifts the aggregate
A. Supply curve to the right. B. Supply curve to the left. C. Demand curve to the right. D. Demand curve to the left.
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a. U.S. exports decrease, and U.S. imports increase. b. U.S. exports and U.S. imports both decrease. c. U.S. exports increase, and U.S. imports decrease. d. U.S. exports and U.S. imports both increase.