When the Fed sells bonds on a mass scale
A) bonds go to the Fed, and dollars go into the banking system, so the money supply tends to rise.
B) bonds go to the Fed, and dollars exit the banking system, so the money supply tends to fall.
C) banks have fewer bonds and more dollars, so the money supply tends to rise.
D) banks have more bonds and fewer dollars, so the money supply tends to fall.
D
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An industry with a strong union (e.g., UAW)
a. will increase wages in the nonunion sector of the industry b. will increase employment for union workers when wages increase c. can force employers to hire all unions members regardless of the wage d. can increase the demand for union workers by increasing turnover and reducing productivity e. can bargain for wages that are greater than the market's equilibrium wage
An increase in the demand for a product means that the:
a. demand curve shifts to the left. b. demand curve shifts to the right. c. supply curve shifts to the right. d. supply curve shifts to the left. e. quantity supplied has increased.
The largest in-kind transfer received by the poor households in the U.S. is:
a. Old-Age, Survivors, and Disability Insurance. b. the Head Start special education program for poor children. c. Medicaid, which provides long-term medical care for the poor. d. the food stamp program, which distributes food coupons to poor households. e. Temporary Assistance for Needy Families.
The data for the U.S. show that investment and profits
A) have a strong negative relationship. B) are positively related during recessions, and negatively related during expansions. C) move independently. D) are positively related during expansions, and negatively related during recessions. E) none of the above