If the Fed reduces the money supply, there will be a decline in
a. government purchases
b. unemployment
c. purchases of consumer durables
d. demand for bonds
e. deflationary pressures
C
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What are the main characteristics of high-income and low-income households?
What will be an ideal response?
Lack of information to consumers on prices is a problem of
a. government failure b. externalities c. exploitation d. market failure e. none of the above
Which of the following is not a cause of market failure?
A) Incomplete information B) Externalities C) Individuals acting according to their own self-interest D) Public goods
Which of the following defines the face value of a bond?
a. The amount that the bond issuer agrees to pay the investor b. The rate of return a bond is expected to pay at the time of purchase c. The current price of a bond at a given time d. The interest rate paid on a bond either annually or semi-annually