The money supply decreases if the Fed
a. sells Treasury bonds. The larger the reserve requirement, the larger the decrease will be.
b. sells Treasury bonds. The smaller the reserve requirement, the larger the decrease will be.
c. buys Treasury bonds. The larger the reserve requirement, the larger the decrease will be.
d. buys Treasury bonds. The smaller the reserve requirement, the larger the decrease will be.
b
Economics
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All other thing unchanged, when the Fed sells government bonds, it aims to shift the aggregate demand curve to the right.
a. true b. false
Economics
In the equation S = Y - C, in order to interpret Y as disposable income, it is necessary to interpret S as ________ saving
A) private B) national C) government D) business
Economics