If the Fed sells U.S. government securities to drain reserves from banks, which of the following is most likely to occur?
a. The demand for money will increase and the interest rate will rise
b. The money supply will increase and the interest rate will fall.
c. The interest rate will rise and the quantity of money demanded will fall.
d. The money supply will decrease and the interest rate will fall.
e. The interest rate will fall and the quantity of money demanded will increase.
c
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Kuznets's investigations of development suggested that income
a. generally becomes more unequal as development progresses b. generally becomes more unequal up to a point, then becomes more equal c. generally becomes more equal as development progresses d. generally become more equal up to a point, then become more unequal e. none of the above
Compared with a perfectly competitive firm in long-run equilibrium, a monopolistically competitive firm will operate on the upward-sloping portion of the average-total-cost curve
a. True b. False Indicate whether the statement is true or false
Suppose John is a conservative and the economy is in a recession. Which fiscal policy does he recommend?
a. increase taxes b. decrease taxes c. increase G spending d. decrease G spending e. increase the money supply
One sign of the cartel power of the NBA is the use of salary caps.
a. true b. false