An outright purchase of government securities by the Fed
A) permanently increases bank reserves.
B) temporarily increase bank reserves.
C) permanently reduces bank reserves.
D) temporarily reduces bank reserves.
A
Economics
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In most cases, higher interest rates cause the velocity of M1 to
A) turn negative. B) move erratically. C) increase. D) decline.
Economics
The excess capacity theorem states that
a. society is worse off with fewer monopolistic competitors. b. costs of production under monopolistic competition can be lowered by reducing the number of producers. c. lack of excess capacity leads to shortages during periods of unexpected growth in demand for goods produced by monopolistic competition. d. there is too much choice in our economy.
Economics