When the Fed sells foreign assets and buy domestic assets at the same time,
A) its assets and liabilities rise by the same amount.
B) its assets and liabilities fall by the same amount.
C) the composition of its assets changes, but its liabilities are unaffected.
D) the composition of its liabilities changes, but its assets are unaffected.
C
You might also like to view...
If a surplus exists in the market for swimwear, an economist would predict that
a. the price of swimwear will rise b. producers will increase the production of swimwear c. the supply of swimwear will increase d. the price of swimwear at retail outlets will begin to fall e. buyers will react to the surplus by increasing their demand for swimwear
The four main forms of income that economists have identified include all of the following except
a. wages b. wealth c. rent d. profit e. interest