If the Fed buys government bonds from the open market, it will cause:
A) a shift of the supply curve for reserves to the right.
B) a shift of the supply curve for reserves to the left.
C) a downward movement along the supply curve for reserves.
D) an upward movement along the supply curve for reserves.
A
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Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are
A) complements in consumption. B) both luxury goods. C) both inferior goods. D) substitutes in consumption.
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $180 and increasing, and average variable cost is $160 . Assuming it wants to maximize its profits, it should: a. increase output
b. decrease output, but not shut down. c. maintain its current output rate. d. shut down.