If the Federal Reserve increases its bond purchases, the short-run effects will be
a. an increase in the money supply and lower real interest rates.
b. a decrease in the money supply and lower real interest rates.
c. an increase in the money supply and higher real interest rates.
d. a decrease in the money supply and higher real interest rates.
A
Economics
You might also like to view...
A decrease in the personal income tax rate ________ disposable income which ________ consumption
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Economics
If capital gains equal zero, then the Ng family's wealth at the end of the year equals their wealth at the beginning of the year
A) plus consumption minus income. B) plus income. C) plus saving. D) minus personal income taxes. E) minus consumption.
Economics