The Latin expression ceteris paribus means

If the Federal Reserve purchases newly issued government debt

A) the effect is as if the Treasury had printed money to cover the deficit. B) the effect is the same as borrowing from the public. C) the money supply decreases. D) existing money is destroyed.

A reduction in the discount rate

A. Increases the cost of borrowing reserves from the Federal Reserve. B. Discourages banks from borrowing reserves from the Fed. C. Is consistent with a tight monetary policy. D. Signals the Federal Reserve's desire for additional credit expansion.