Which of the following would cause the money supply to increase?
a. An open market purchase by the Fed. b. A reduction in the discount rate.
c. A reduction in required ratios. d. All of these.
d
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The aggregate demand curve will shift outward and to the right when the Federal Reserve undertakes which of the following monetary policies?
a. Open market purchases of government securities b. An increase in the discount rate c. An increase in the reserve requirement d. A reduction in loans to the U.S. Treasury e. A more lenient supervision of savings and loan institutions
Which of the following would cause the money demand curve to shift to the left?
A) an open market purchase of Treasury securities by the Federal Reserve B) an increase in the interest rate C) an increase in the price level D) a decrease in real GDP