In the United States, business cycles have occurred against a backdrop of a long-run trend of

As default risk increases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant

A) increases; less B) increases; more C) decreases; less D) decreases; more

The Reserve Bank of Glassen is the apex banking institution in the country of Glassen. Money supply in Glassen will increase when:

a. the Reserve Bank of Glassen buys bonds from commercial banks b. the Reserve Bank of Glassen raises the required reserve ratio for commercial banks. c. the Reserve Bank of Glassen sells government bonds to commercial banks. d. the Reserve Bank of Glassen raises the discount rate for commercial banks. e. the Reserve Bank of Glassen prints new checks.