When the Fed makes open-market sales bank
a. withdrawals and lending increase.
b. withdrawals increase and lending decreases.
c. deposits and lending increase.
d. deposits increase and lending decreases.
b
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The Federal Reserve views commercial bank use of the discount window as
A) something to be used only by commercial banks. B) completely up to the borrower. C) a privilege, not a right for eligible borrowers. D) something to be used only in financial panics.
Describe the comparable worth controversy?
During a period of disinflation the purchasing power of the dollar _____.
Fill in the blank(s) with the appropriate word(s).
Other things being equal, an expansion of commercial bank lending
A. is desirable during a period of demand-pull inflation. B. increases the money supply. C. changes the composition, but not the size, of the money supply. D. reduces the money supply.