When the Fed sells government securities, it
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans
b. raises the cost of borrowing from the Fed, discouraging banks from making loans
c. increases the amount of excess reserves that banks hold, encouraging them to make loans
d. increases the amount of excess reserves that banks hold, discouraging them from making loans
e. decreases the amount of excess reserves that banks hold, discouraging them from making loans
E
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Refer to the table below, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference. In a paired-choice vote between a stadium and a park:
A. A majority of the voters would favor the park, 2-to-1
B. A majority of the voters would favor the stadium, 2-to-1
C. A majority of the voters would favor the park, 3-to-0
D. A majority of the voters would favor the stadium, 3-to-0
The aggregate supply-aggregate demand diagram models
A. the behavior of individual firms. B. the interaction of producers and consumers for a particular good or service. C. the economy as a whole. D. the behavior of individual consumers.