The Fed could sell bonds in the open market in an effort to keep interest rates constant when
A. The discount rate increases.
B. The reserve requirement increases.
C. Money demand decreases.
D. Money demand increases.
Answer: C
You might also like to view...
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 7 percent?
GDP is different than GNP in that
A) it accounts for net unilateral transfers. B) it does not account for indirect business taxes. C) it does not account for a country's production using services with foreign-owned capital. D) it accounts for depreciation. E) it is unhelpful when tracking national income.
In a nation's balance of payments, the current account includes
A) the changes in the official reserve transaction account. B) the purchases of foreign assets. C) the balance of the trade account, the balance of the services account, and net unilateral transfers. D) all of the above.