If the Fed decides to sell $10 million in securities and the Paris First National Bank writes out a $10 million check to purchase these securities, then the
a. Paris First National Bank now has $10 million more of excess reserves at the Fed
b. Paris First National Bank has $10 million fewer reserves
c. Fed has increased its asset position by $20 million
d. Fed has reduced its asset position by $20 million
e. money supply will likely increase due to the economy's inflationary phase
B
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Classical economists think that lump-sum tax changes
A) should be used to smooth business cycles. B) have a powerful effect on the economy. C) affect aggregate demand after a lag. D) have no effect because of Ricardian equivalence.
Every government's set of policies used to govern their economy:
A. vary widely from one another, making international trade a simple process. B. vary widely from one another, making international trade sometimes difficult. C. are largely the same, making international trade a simple process. D. are similar in most respects, but different in a few areas, making international trade sometimes difficult.
You have just been hired as a business consultant to determine what pricing policy would be appropriate to increase the total revenue of a bakery. The first step you would take would be to
a. increase the price of every loaf of bread in the store. b. look for ways to cut costs and increase profit for the bakery. c. determine the price elasticity of demand for the bakery's products. d. determine the price elasticity of supply for the bakery's products.
A decrease in U.S. real interest rates causes the dollar to _________________, which tends to __________________ U.S. Real GDP
A) appreciate; raise B) appreciate; lower C) depreciate; raise D) depreciate; lower