When the Fed sells government securities, it:
A. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public.
B. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public.
C. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
D. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public.
Answer: C
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Identify the correct statement with respect to consumption and saving function
a. Both the consumption function and the saving function have negative slopes. b. As disposable income declines, consumption and saving increase. c. The consumption function has a negative slope while the saving function has a positive slope. d. As disposable income rises, consumption and saving increases. e. The consumption function has a positive slope while the saving function has a negative slope.
Of the types of business organizations in the United States, corporations account for ________ percentage of firms and ________ percentage of profits
A) the smallest; the largest B) smallest; neither the largest nor smallest C) neither the largest nor smallest; the largest D) the largest; the largest