Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public, the monetary base
A) decreases by the same amount if the general public sells the securities or if a bank sells the securities.
B) does not change if it is the general public that sells the securities.
C) increases by a larger amount if a bank sells the securities than if the general public sells the securities.
D) increases by a larger amount if the general public sells the securities than if a bank sells the securities.
E) increases by the same amount if the general public sells the securities or if a bank sells the securities.
E
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Real GDP can increase either because the quantity of labor increases or because labor productivity increases. What is the effect on the standard of living if real GDP increases because
a. the quantity of labor increases? b. labor productivity increases?
Given its size, the United States does not have to worry about limitations on resources
a. True b. False Indicate whether the statement is true or false