To increase the quantity of money in the economy, the Federal Reserve can
A) print more money and give it to the banks.
B) increase the required reserve ratio.
C) buy government bonds in an open market operation.
D) sell government bonds in an open market operation.
E) cut taxes.
C
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What will be an ideal response?
If U.S. net exports are positive
A) other countries borrow from the United States to pay for some of the goods they purchase from the United States. B) other countries make loans to the United States so that the United States can pay for some of the goods it purchases from other countries. C) the United States sells some of the assets it owns in other countries to pay for some of the goods it sells to other countries. D) the United States borrows from other countries to pay for some of the goods the United States purchases from them.