A open market purchase of government securities by the Fed will cause which of the following?

A) an increase in the equilibrium quantity of reserves
B) a reduction in the federal funds rate
C) an increase in the amount of excess reserves that banks will wish to hold
D) all of the above

D

Economics

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Real GDP refers to GDP adjusted:

A) for changes in ruling political party. B) for changes in tax rates. C) for changes in net imports. D) for changes in prices.

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Whenever a firm's marginal costs are less than its average costs, its average costs must be:

a. falling. b. rising. c. constant. d. falling, then rising.

Economics