When a central bank sells bonds, cash reserves throughout the financial system increase, interest rates fall, and investment spending increases

Indicate whether the statement is true or false

FALSE

Economics

You might also like to view...

How do countries protect their domestic economy from excessive influence by multinational corporations?

(A) By requiring the multinationals to export a certain percentage of their products. (B) By raising the price of goods and services provided by the multinationals. (C) By limiting the supplies of the multinational corporations. (D) By developing their internal economies.

Economics

When a unit tax of $2 is levied on a product

A) the entire $2 is paid by the consumer. B) the entire $2 is paid by the producer. C) both the consumer and producer pay $2 each. D) the consumer pays part of the $2 and the producer pays the rest.

Economics