The money supply contracts when the Fed:
a. replaces worn and ripped Federal Reserve notes.
b. sells government securities
c. borrows from the U.S. Treasury.
d. purchases equities in major U.S. corporations.
b
You might also like to view...
The Trans-Pacific Partnership (TPP) is an agreement between the United States and ________ that was meant to reduce trade barriers
A) South America B) the European Union C) China D) eleven other countries
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?
A) The price would decrease, the demand would increase, and the supply would decrease. B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would decrease. C) The price would decrease, the quantity supplied would decrease, and the quantity demanded would increase. D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.