If the Fed wants to increase the federal funds rate, it will conduct an open market operation in which it ________ government securities and thereby shifts the ________ curve ________
A) sells; RD; leftward
B) sells; RS; rightward
C) sells; RS; leftward
D) buys; RD; rightward
E) buys; RS; leftward
The figure above shows the market for reserves.
C
You might also like to view...
Which of the following are components of economic growth
a. growth in labor force. b. technological progress. c. investment. d. all of the above.
Suppose that Congress were to repeal an investment tax credit. What would happen in the market for loanable funds?
a. The demand and supply of loanable funds would shift right. b. The demand and supply of loanable funds would shift left. c. The supply of loanable funds would shift right. d. The demand for loanable funds would shift left.
Which of the following would tend to contribute to a U.S. current account surplus?
A. The United States cuts back on American military personnel stationed in Japan. B. U.S. tourists travel in large numbers to Asia. C. The United States makes a unilateral tariff reduction on imported goods. D. Russian vodka becomes increasingly popular in the United States.
Research on the effects of recessions on the real level of GDP shows that
A. recessions cause only temporary reductions in real GDP, which are offset by growth during the expansion phase. B. recessions cause both temporary and permanent declines in real GDP, but most of the decline is temporary. C. recessions cause both temporary and permanent declines in real GDP, but most of the decline is permanent. D. recessions cause large, permanent reductions in the real level of GDP.