A open market purchase of government securities by the Fed will cause which of the following?
A. an increase in the equilibrium quantity of reserves
B. an increase in the amount of excess reserves that banks will hold initially
C. a reduction in the federal funds rate
D. all of these
Answer: D
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Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of
A) an increase in demand. B) an increase in supply. C) a decrease in demand. D) a decrease in supply.
Fiscal policy consists of
A. changes in exchange rate par values. B. changes in government expenditures and taxes. C. changes in the official settlements balance. D. changes in money supply and interest rates.
Which of the following represents real GDP?
A) GDP in constant dollars B) GDP in terms of goods C) GDP in base year dollars D) all of the above
What two main things did returning veterans want to buy after World War II? ____________________.
Fill in the blank(s) with the appropriate word(s).