When the Fed buys U.S. government securities from a member bank, _____
a. there is a decrease in its assets
b. there is an increase in its assets
c. there is a decrease in its liabilities
d. there is an increase in its liabilities
e. its total assets and liabilities remain unchanged
e
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Explain the effect on the demand for dollars in the foreign exchange market of an increase in the U.S. interest rate differential
What will be an ideal response?
Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?
a. The demand curve will rotate inward at the given price level. b. The will be a movement up along the demand curve. c. The demand curve will rotate outward at the given price level. d. There will be a downward movement along the demand curve. e. The demand curve will become steeper.