Which of the following actions by the Fed would lead to an increase in the money supply?
A) an increase in the differential between the discount rate and the federal funds rate
B) an increase in the required reserve ratio
C) an increase in tax rates
D) the purchase of government securities
D
Economics
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Price ceilings are illegal in the United States
Indicate whether the statement is true or false
Economics
If the quantity of money demanded exceeds the quantity of money supplied, then
A) the quantity of nonmonetary assets demanded exceeds the quantity supplied. B) the quantity of nonmonetary assets supplied exceeds the quantity demanded. C) the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal. D) you can make no conclusions about the relative supply and demand of nonmonetary assets.
Economics