Other things equal, an increase of Treasury bonds from $100 billion to $120 billion in the economy would:
A. not change the size of the public debt.
B. increase the public debt from $460 billion to $480 billion.
C. increase the public debt from $400 billion to $420 billion.
D. decrease the public debt by $20 billion.
B. increase the public debt from $460 billion to $480 billion.
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If the FOMC decides that the Fed should buy bonds it
A) instructs the New York Federal Reserve Bank's trading desk to buy them. B) asks the Congress for permission to buy them. C) requires the permission of the Financial Oversight Committee. D) requires the President's signature on the buy order.
Expansionary monetary policy actions
A) Would decrease the demand for agricultural loans. B) Would decrease the derived demand for farm input supply firms. C) Would increase the derived demand for farm input supply firms. D) None of the above.