When a bank sells a bond to the Fed
A. its liabilities decrease.
B. its liabilities increase.
C. its reserves initially increase.
D. its reserves initially decrease.
Answer: C
Economics
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If ________, total efficiency units of labor will increase
A) firms hire more workers B) the number of retired people in an economy increases C) the capital stock of an economy decreases D) the rate of unemployment increases
Economics
In Year 1 suppose the economy is at potential GDP and that the federal budget deficit equals $100 billion. In Year 2 the federal budget deficit rises to $150 billion, but the cyclically adjusted budget deficit falls to $75 billion
How can the actual budget deficit rise and the cyclically adjusted budget deficit fall?
Economics