If the Fed buys U.S. Treasury securities, then this
A) increases reserves, causes banks to reduce their loans, and increases the money supply.
B) decreases reserves, causes banks to reduce their loans, and decreases the money supply.
C) increases reserves, encourages banks to make more loans, and increases the money supply.
D) decreases reserves, causes banks to reduce their loans, and increases the money supply.
C
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Which of the following reflects diseconomies of scale?
a. Marginal product decreases as output increases. b. Short-run marginal cost increases as output increases. c. Long-run marginal cost increases as output increases. d. Short-run average cost increases as output increases. e. As output doubles, long-run total cost more than doubles.
If an improvement in the quality of education in the United States increases the productivity of labor, this will
a. increase aggregate demand and decrease aggregate supply. b. increase short-run aggregate supply and reduce aggregate demand. c. decrease aggregate demand and increase short-run aggregate supply. d. increase both long-run and short-run aggregate supply.