If the Federal Reserve purchases government securities,
A) banks' reserves will increase.
B) the federal funds rate will rise.
C) the discount rate will be forced higher.
D) None of the above answers is correct because none of the effects occur.
A
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In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) shift the line rightward. B) shift the line leftward. C) make the line positively sloped. D) cause a movement along the line.
The German Hyperinflation of the early 1920s was caused by
A) large deficits resulting from the high levels of war spending and falling taxes. B) rising oil prices after World War I caused a severe stagflation and hyperinflation. C) an overly aggressive monetary policy implemented to combat a severe recession. D) the German government raising funds for expenditures by selling bonds to the central bank.