Refer to the diagram for the federal funds market. If the Fed wants to increase reserves from $200 billion to $300 billion it should:
A. buy bonds from banks and the public.
B. sell bonds to banks and the public.
C. buy bonds from banks and sell them to the public.
D. buy bonds from the public and sell them to banks.
A. buy bonds from banks and the public.
You might also like to view...
Since World War II the U.S. ________
A) has seen a substantial increase in the inflation rate B) has seen less frequent periods of deflation C) has seen a significant upward trend in real GDP D) all of the above E) none of the above
When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling shares of stock
a. True b. False Indicate whether the statement is true or false
You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to double by the end of the year. As a result,
a. your demand for peanut butter will increase, but not until the end of the year. b. your demand for peanut butter increases today. c. your demand for peanut butter decreases as you look for a substitute good. d. you will wait for the price of jelly to change before altering your demand for peanut butter.
An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. ________ has the comparative advantage in TVs and ________ has the comparative advantage in radios.
A. Rich; Rich B. Jen; Jen C. Jen; Rich D. Rich; Jen