If the Fed sells $1 billion of short-term securities issued by the Bank of Japan and at the same time purchases $1 billion of short-term securities issued by the U.S. Treasury,
A) the monetary base will decline by $1 billion.
B) the monetary base will rise by $1 billion.
C) the Fed has conducted an unsterilized foreign-exchange intervention.
D) the Fed has conducted a sterilized foreign-exchange intervention.
D
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What effect does restrictive monetary policy have on short-term real interest rates?
a. Restrictive monetary policy tends to push short-term interest rates upward. b. Restrictive monetary policy tends to push short-term interest rates downward. c. The effect of restrictive monetary policy on short-term interest rates is unpredictable. d. Restrictive monetary policy has no effect on short-term interest rates.
The utility from a specific product is
A. determined by a consumer's income. B. constant as one consumes more units of it. C. determined by the price of the product. D. a measure of one's preference or taste for it.