The sale of Treasury securities by the Federal Reserve will, in general
A) not change the money supply.
B) not change the quantity of reserves held by banks.
C) increase the quantity of reserves held by banks.
D) decrease the quantity of reserves held by banks.
Answer: D
Economics
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A surplus is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded
Indicate whether the statement is true or false
Economics
An increase in aggregate demand is most likely to cause an increase in the price level when the economy is
a. operating near full employment. b. on the horizontal part of the aggregate supply curve. c. operating with high unemployment. d. operating with substantial excess capacity.
Economics