If the Fed conducts an open market purchase of bonds, the
a. money supply decreases as reserves are injected into the banking system
b. demand for money increases as reserves are drained from the banking system
c. demand for money decreases as reserves are injected into the banking system
d. money supply increases as reserves are injected into the banking system
e. money supply increases as reserves are drained from the banking system
D
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The "new growth theory" focuses on the sources of technological change.
a. true b. false
If the exchange rate between the U.S. dollar and the Mexican peso went from $1 US = 9 peso to $1 US = 10 peso, then
a. American goods have become less expensive for Mexicans. b. Mexican goods have become more expensive for Americans. c. American goods have become more expensive for Mexicans. d. American exports to Mexico are likely to increase.