Suppose you read in the paper that the Federal Reserve plans to expand the money supply. The Fed is most likely to do this by
A) printing more currency and distributing it.
B) purchasing government bonds from the public.
C) selling government bonds to the public.
D) buying newly issued government bonds directly from the government itself.
B
Economics
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Restrictive monetary policy will:
A. Decrease the lending capacity for banks. B. Reduce interest rates. C. Cause a rightward shift of aggregate demand. D. Raise the equilibrium price level.
Economics
As there is a movement upward and leftward along the AD curve,
a. aggregate expenditure decreases b. the price level remains constant c. equilibrium GDP increases d. aggregate expenditure increases e. the interest rate falls
Economics