When the Fed sells government securities
A. reserves decrease, leading to a increase in the money supply by an amount more than the sale of the government securities.
B. reserves increase, leading to a increase in the money supply by an amount more than the sale of the government securities.
C. reserves decrease, leading to a decrease in the money supply by an amount more than the sale of the government securities.
D. reserves increase, leading to a decrease in the money supply by an amount more than the sale of the government securities.
Answer: C
You might also like to view...
The figure above shows a labor market. If this labor market is perfectly competitive, employment is
A) 0 hours per week. B) 50 hours per week. C) 100 hours per week. D) 150 hours per week.
This method of financing government spending is frequently called printing money because high-powered money (the monetary base) is created in the process
A) financing government spending with taxes B) financing government spending through a Treasury sale of bonds that are then purchased by the Fed C) financing government spending by selling bonds to the public, which pays for the bonds with currency D) financing government spending by selling bonds to the public, which pays for the bonds with checks
Elephant populations in some African countries have started to rise because
a. environmentalists have developed effective educational campaigns. b. the value of ivory has decreased. c. some elephants have been made a private good, and people are allowed to kill elephants on their own property. d. regulations are being enforced more forcefully.
When output is 100 units, the firm's total fixed cost is $100. What will this firm's total fixed cost be if output doubles to 200 units?
A. $200 B. $1,000 C. $100 D. Can't tell from the information provided.