During 1929-1933, monetary policy was
a. highly expansionary and this led to an increase in the general level of prices.
b. characterized by steady monetary growth, which resulted in price stability.
c. characterized by a sharp reduction in the supply of money, which led to downward pressure on prices and a decline in output.
d. highly expansionary and this led to a reduction in the general level of prices.
C
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The Fed can change the money supply by buying or selling long-term Treasury bonds. Purchasing long-term securities is commonly called
A) open market operations. B) quantitative easing. C) discount operations. D) federal funds speculation.
Why do we use two supply curves in the aggregate goods and services market? What is the difference between them, and why do they have different slopes?