Open-market purchases by the Fed make the money supply
a. increase, which tends to increase the value of money.
b. increase, which tends to decrease the value of money.
c. decrease, which tends to decrease the value of money.
d. decrease, which tends to increase the value of money.
B
You might also like to view...
Which of the following statements is true?
A) The lower the price of a bond, relative to its face value, the lower the interest rate. B) The lower the price of a bond, relative to its maturity, the lower the interest rate. C) The higher the price of a bond, relative to its face value, the higher the interest rate. D) The lower the price of a bond, relative to its face value, the higher the interest rate.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.