Open market sales of bonds by the Federal Reserve reduce the money supply and
a. reduce aggregate expenditures
b. increase real aggregate expenditures
c. are helpful in monetizing the federal debt
d. stimulate purchases of consumer durables
e. stimulate spending at many levels
A
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Refer to Table 2-7. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella B) 1/4 of an umbrella C) 4 umbrellas D) 10 umbrellas
Which of the following describes the degree of control that the Fed has over the money supply?
A) The Fed has substantial control over the money supply. B) The Fed has absolute control over the money supply. C) The Fed has no control of the money supply. D) The Fed is not concerned about the level of the money supply, and does not attempt to control it.
A resource that is publicly owned and allocated under a system of unrestricted access is known as
(a) a socialist resource. (b) a collective resource. (c) a common property resource. (d) a transferable resource.
An externality is any activity for which an individual firm or consumer does not take into account all
A) of the ramifications of its actions on others. B) associated costs. C) associated benefits. D) associated costs and benefits.