When the Fed decreases the money supply, interest rates:
A. rise.
B. fall.
C. are unaffected.
D. rise and then fall.
Answer: A
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Expansion of a nation's human capital can be achieved through
A) education and training. B) education and saving. C) education and technology improvements. D) education only. E) nothing because human capital is determined by the skills people are born with.
Many small governments provide more utility to individuals than one large government in most cases because _____
a. individuals have heterogeneous preferences and can move to an area that suits their taste for government b. individuals have homogeneous preferences and can move to an area that suits their taste for government c. the optimal sharing group for nearly all public goods is the local level d. individuals generally have a preference for local government
Which of the following is responsible for controlling the money supply in the United States?
a. The U.S. Congress. b. The Board of Governors of the Federal Reserve System. c. The U.S. Treasury. d. The Council of Economic Advisors.
An increase in the demand for loanable funds will, everything else equal,
a. increase the supply of funds b. lower the interest rate and reduce investment spending c. lower the interest rate and increase investment spending d. raise the interest rate and reduce investment spending e. raise the interest rate and increase investment spending