Proponents of the interest-rate-based monetary policy transmission mechanism argue that when the Federal Reserve buys bonds, there will be
A) an increase in investment spending.
B) a decrease in the money supply.
C) a decrease in nominal Gross Domestic Product (GDP), but not in real income.
D) a decrease in the price of outstanding bonds.
A
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The rationale behind patents is that if inventors and artists cannot secure the returns from successful projects, fewer new inventions and works of art will be produced
Indicate whether the statement is true or false
The U.S. demand for British pounds is:
A. downsloping because a higher dollar price of pounds means British goods are cheaper to Americans. B. downsloping because a lower dollar price of pounds means British goods are more expensive to Americans. C. upsloping because a lower dollar price of pounds means British goods are cheaper to Americans. D. downsloping because a lower dollar price of pounds means British goods are cheaper to Americans.