Holding all other factors constant, consumers demand more of a good the

Describe why monetary policy rules are superior to discretionary monetary policy

What will be an ideal response?

If the Treasury finances an expenditure by borrowing from the banking system, the money supply will not be affected if the banks

A) borrowed from the discount window to buy the government bonds. B) had no excess reserves when they bought the bonds. C) were not members of the Federal Reserve System. D) had no other government securities in their portfolios.