Suppose the Fed buys government securities from the public. The liquidity effect of this is that the interest rate will

A) increase.
B) decrease.
C) remain constant.
D) any of the above are possible


B

Economics

You might also like to view...

For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of beer. Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces

Which of the following is true about the comparative advantage between the two countries? A) Slovakia has the comparative advantage in beer. B) Hungary has the comparative advantage in beer. C) Hungary has the comparative advantage in salami. D) Slovakia has the comparative advantage in salami and beer.

Economics

Congestion pricing

A. is a tax. B. keeps nasal passages clear. C. is never efficient. D. all of these answer options are correct.

Economics

In recent years in China, the fraction of the population living below the international poverty line ($1.25 per person per day):

A. fell substantially. B. fell to zero. C. increased more on average compare to other developing countries. D. increased dramatically.

Economics

What is the main theoretical implication regarding the standard employer-based discrimination model?

A. Discrimination is not profitable. B. Discrimination can only occur in competitive labor markets. C. Discrimination can only occur if there are exactly two types of labor (e.g., white and black). D. Workers do not care if firms are discriminatory. E. Most firms are discriminatory.

Economics