The sale of foreign assets by a central bank accompanied by an open market purchase of securities of the same size results in:
A) a reduction in the monetary base
B) an increase in the monetary base
C) a sterilized intervention
D) an unsterilized intervention
C
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Saving is not a problem in the classical model because
A) savers and investors are the same people. B) interest rates are flexible, and savings were channeled into investment. C) the classical economists assume that saving was beneficial to people for retirement. D) saving would be spent by consumers eventually.
Suppose that Mark and Kate are the only consumers of pizzas in a small town. Mark purchases 6 pizzas a week if the price is $12.00 per pizza, but only 3 pizzas per week if the price is $16.00 . Kate, on the other hand, purchases 3 pizzas per week at $12.00 per pizza, but only 2 per week if the price is $17.00 each. The market demand for pizza at a price of $12.00 is equal to _____
a. 5 b. 7 c. 14 d. 9
The graph shown demonstrates a tax on buyers. Before the tax was imposed, the sellers produced ________ units and received ________ for each one sold.
A. 9; $30 B. 9; $18 C. 6; $34 D. 6; $22
With regard to the subject matter of American economic history, Hughes and Cain (2011) suggest that
(a) the presence of the highest living standards known in world history supports the claim that American history is largely a "success story." (b) the American economy is an economy with only successes but no failures. (c) U.S. history provides a fragmented record of problem-solving and problem-producing solutions to the challenges of economic development. (d) there is no link between today's economy and the economy of yesteryear.