Open market purchases ________ reserves and the monetary base thereby ________ the money supply
A) raise; lowering
B) raise; raising
C) lower; lowering
D) lower; raising
B
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Which of the following CORRECTLY describes the above figure?
A) There is no relationship between x and y. B) There is a positive relationship between x and y. C) There is a negative relationship between x and y. D) None of the above answers are correct.
A firm will hire a unit of input up to the point where
A) the marginal cost of the input equals the marginal cost of output. B) the marginal revenue product of the input is equal to the marginal factor cost of the input. C) the price of the input is equal to the price of output. D) the marginal physical product of the input is equal to the price of output.
The data on Real GDP shows that
A. real GDP growth is almost exactly constant B. real GDP rises and falls. It has tended to rise for longer periods and more quickly than it has fallen, and therefore, has risen through time. C. real GDP rises and falls. It has tended to fall for longer periods and more quickly than it has risen, and therefore, has fallen through time. D. real GDP rises and falls. It has tended to rise and fall equally and has remained roughly constant over time.
What happens to the AD curve, the SRAS curve, and the LRAS curve if the central bank increases the money supply?
What will be an ideal response?