As part of the "wealth channel of monetary policy," a lower money supply __________ interest rates and thus __________ bond prices
A) raises; raises
B) raises; lowers
C) lowers; raises
D) lowers; lowers
B
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When the Fed increased the volume of discount loans after the terrorist attacks of September 11, 2001, it was trying to achieve
Explain how the outcome of the Cournot model is achieved
What will be an ideal response?
Suppose you have four choices—go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is
A) the value of the book not read. B) the value of the television program not watched. C) the value of the concert that you didn't attend. D) the value of the activity that you would have selected if you hadn't gone to the movie.
In the simple liquidity preference model, changes to the money supply will have a smaller effect on interest rates the:
A. flatter, more elastic is the money demand curve. B. flatter, less elastic is the money demand curve. C. steeper, more elastic is the money demand curve. D. steeper, less elastic is the money demand curve.