If the Treasury finances an expenditure by borrowing from the banking system, the money supply will not be affected if the banks
A) borrowed from the discount window to buy the government bonds.
B) had no excess reserves when they bought the bonds.
C) were not members of the Federal Reserve System.
D) had no other government securities in their portfolios.
B
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Which of the following pairs of goods are NOT complements?
A) Hockey sticks and hockey pucks B) Computer CPUs and computer monitors C) On-campus student housing and off-campus rental apartments D) all of the above E) none of the above
Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true?
A) The marginal cost at the first plant must equal marginal revenue. B) The marginal cost at the second plant must equal marginal revenue. C) The marginal cost at the two plants must be equal. D) all of the above E) none of the above