Which of the following generally occurs when a central bank pursues contractionary monetary policy?
A) the central bank purchases bonds and the interest rate increases.
B) the central bank purchases bonds and the interest rate decreases.
C) the central bank sells bonds and the interest rate increases.
D) the central bank sells bonds and the interest rate decreases.
C
You might also like to view...
Refer to Table 2-16. If the two countries specialize and trade, who should export cell phones?
A) They should both be importing cell phones. B) Finland C) Estonia D) There is no basis for trade between the two countries.
An advantage of using the cross-sectional regression method in estimating production is that
A) the problem of technological change over time is overcome. B) there is no need to adjust data, which are in monetary terms for geographical differences. C) we can assume that all plants operate at their most efficient input combinations. D) All of the above