Answer the following questions true (T) or false (F)
1. When the Federal Reserve increases the money supply, people spend more because interest rates fall.
2. Contractionary monetary policy refers to the Fed's decreasing the money supply and decreasing interest rates to decrease real GDP.
3. Your income will increase if the Federal Reserve buys a Treasury bill from you and pays you with a check from the Fed.
1. TRUE
2. FALSE
3. FALSE
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Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
A. subtracting total variable costs from total revenue B. calculating the product of average total cost and quantity C. subtracting the average variable cost from the total cost D. subtracting the total variable cost from the total cost
If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck. B. buy fewer soft drinks with his paycheck. C. no longer afford pizza on his paycheck. D. Either A or B is possible.
If inflation becomes a serious problem, a Monetarist-oriented President is likely to favor a policy emphasizing
A) slower monetary growth. B) lower interest rates. C) higher taxes. D) wage and price controls.
Education and training of workers would best be categorized as
A) land. B) labor. C) physical capital. D) human capital.