If at a given exchange rate foreign citizens want to buy fewer U.S bonds, then the
a. supply of dollars in the market for foreign-currency exchange shifts right.
b. supply of dollars in the market for foreign-currency exchange shifts left.
c. demand for dollars in the market for foreign-currency exchange shifts right.
d. demand for dollars in the market for foreign-currency exchange shifts left.
a
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When the Fed conducts an open market operation by purchasing securities from a bank, ________
A) public holdings of securities increase B) the bank's deposits increase but its reserves do not change C) the bank's deposits increase but its reserves decrease D) the bank's reserves increase
Which of the following makes demand less elastic?
A) the existence of many close substitutes for the good B) spending a large proportion of income on the good C) a short time elapsing since the product's price changed D) All of the above answers are correct.