If the Fed purchases U.S. government securities in the open market, all of the following would occur EXCEPT
A) an expansion of the money supply.
B) an increase in investment.
C) a fall in bond prices.
D) an increase in real Gross Domestic Product (GDP).
C
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The total amount of consumption of a society can be increased if
A. firms allow each worker to perform multiple tasks. B. resources are allocated by a central planning group. C. individuals engage in specialization and voluntary trade. D. barter exchange is used in place of money.
The figure above shows ________ relationship between the two variables
A) a positive B) a negative C) no D) an inverse
Attempts by a central bank to increase bank deposits without a decrease in nominal short-term interest rates are referred to as ________
A) quantitative easing B) credit channeling C) open market operations D) liquidity provision
The Keynesian aggregate supply schedule slopes upward because of
a. unstable expectations. b. inflexible wages and prices. c. changes in technology. d. differences between actual and expected price levels.