If the stock market booms, then
a. aggregate demand increases, which the Fed could offset by purchasing bonds.
b. aggregate supply increases, which the Fed could offset by selling bonds.
c. aggregate demand increases, which the Fed could offset by selling bonds.
d. aggregate supply increases, which the Fed could offset by purchasing the money supply.
c
You might also like to view...
A composite currency whose value is the average of the values of the U.S. dollar, the Japanese yen, the euro, and the British pound is known as a:
a. special drawing right. b. productive resource. c. standard of value. d. scarce diligence resource. e. scarce delivery resource.
The firm in a perfectly competitive industry
a. is a price-taker b. is a price-maker c. attempts to differentiate his/her product through advertising d. will earn an economic profit in the long run e. can charge any price it wishes
Developments in the United States, such as credit cards, debit cards, ATMs, and online banking have:
A. increased the supply of money. B. increased the demand for money. C. had no impact on the supply or demand for money. D. decreased the demand for money.
Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s). According to this Application, after the government deceased cigarette taxes in several Canadian provinces in 1994, the price of cigarettes in these provinces decreased by roughly ________ percent.
A. 8 B. 17 C. 50 D. 88