The immediate effect of a bank's purchase of U.S. government securities from the Fed is a(n):
a. decrease in the bank's assets
b. increase in the bank's assets.
c. decrease in the Fed's assets.
d. increase in the Fed's assets.
e. decrease in both the bank's and the Fed's assets.
c
You might also like to view...
Using this consumption function, autonomous consumption is
A) $0. B) between $1 and $2 trillion. C) more than $2 trillion and less that $5 trillion. D) more than $5 trillion and less than $8 trillion. E) more than $8 trillion.
To improve package delivery, one change UPS made involved taking better account of weather forecasts to avoid delays in flying packages. This is an example of
A) positive technological change. B) diseconomies of scale. C) increasing marginal returns. D) a reduction in fixed costs.
The time-inconsistency problem with monetary policy tells us that, if policymakers use discretionary policy, there is a higher probability that the ________ will be higher, compared to policy makers following a behavior rule
A) inflation rate B) unemployment rate C) interest rate D) foreign exchange rate
Floods in the Midwest that diminish farm output would shift the aggregate supply curve outward
a. True b. False Indicate whether the statement is true or false