When a central bank buys or sells government bonds, it conducts:
(a) An open-market operation.
(b) A reserve requirement.
(c) Inter-bank lending.
(d) None of the above.
Answer: (a) An open-market operation.
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In the United States, individuals are forced to make choices
a. because time is scarce, though spending power is not b. because spending power is scarce, though time is not c. though neither time nor spending power are scarce d. because both time and spending power are scarce e. because living standards are low
When the government reduces its restrictions on immigration,
a. the prices of goods rise because the demand for goods increases b. immigration is reduced c. labor mobility is reduced d. wage differentials become narrower e. all workers are better off
In which of the following ways does government affect the consumption component of planned aggregate expenditures?
What will be an ideal response?
The GDP deflator is the
A) difference between real GDP and nominal GDP multiplied by 100. B) difference between nominal GDP and real GDP divided by 100. C) ratio of real GDP to nominal GDP multiplied by 100. D) ratio of nominal GDP to real GDP multiplied by 100.