In its conduct of open market operations, the Fed now buys and sells
a. only U.S. government securities.
b. only mortgage-backed securities issued by large investment banks.
c. a wide range of assets including the stock shares of large banks, domestic automobile manufacturers, and high-technology business firms.
d. a wide range of assets including corporate bonds and mortgage-backed securities.
D
Economics
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When sketched as a function of disposable income, the investment demand curve is:
a. always horizontal. b. always vertical. c. upward sloping. d. parabolic.
Economics
If the Fed wants to lower the interest rate, it will
a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a lower market interest rate
Economics