A decrease in currency in circulation combined with an equal increase in savings account deposits would:
a. increase both M1 and M2
b. increase M1 but have no effect on M2.
c. decrease both M1 and M2.
d. decrease M1 but have no effect on M2.
d
Economics
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When the Fed wants US interest rates to increase, it will usually sell US t-bonds to banks
a. true b. false
Economics
Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. Which of the following could cause a movement from Point C to Point B?
A. a decrease in the interest rate B. an increase in the interest rate C. positive growth in aggregate output D. negative growth in aggregate output
Economics