If the Fed buys government securities from the non-bank public, then
A) reserves at banks decrease.
B) deposits at banks increase and banks' reserves increase.
C) deposits at banks increase and banks' reserves decrease.
D) loans at banks decrease.
E) deposits at banks decrease and banks' reserves increase.
B
Economics
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Which of the following might be an intermediate good?
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An increase in interest rates is likely to cause
A) firms and households to increase the quantity of money demanded. B) firms and households to decrease the quantity of money demanded. C) the money demand curve to shift to the right. D) the money demand curve to shift to the left.
Economics