When the central bank sells $1,000,000 worth of government bonds to the public, the money supply:
A. increases by $1,000,000.
B. decreases by $1,000,000.
C. decreases by more than $1,000,000.
D. decreases by less than $1,000,000.
Answer: C
Economics
You might also like to view...
Economists typically assume that the owners of firms wish to
A) produce efficiently. B) maximize sales revenues. C) maximize profits. D) All of the above.
Economics
An upward shift of the saving schedule suggests:
A. nothing with respect to changes in the APC and APS. B. that the APC and APS have both decreased at each GDP level. C. that the APC and APS have both increased at each GDP level. D. that the APC has decreased and the APS has increased at each GDP level.
Economics