If the Fed wants to increase the interest rate, it will
a. buy bonds and increase the money supply.
b. buy bonds and decrease the money supply.
c. sell bonds and increase the money supply.
d. sell bonds and decrease the money supply.
e. sell bonds and increase money demand.
D
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As it relates to corporations, the principal-agent problem is that:
A. the goals of the corporate managers (the principals) may not match the goals of the corporate owners (the agents). B. the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals). C. the federal government (the agent) taxes both corporate profits and the dividends paid to stockholders (the principals). D. it is costly for the corporate owners (the principals) to obtain a corporate charter from government (the agent).
The production possibilities curve shifts outward when
A) the law of increasing additional cost takes hold. B) the economy is producing efficiently. C) we produce more consumption goods over productive investment in equipment. D) there is an increase in resources or technology.