An increase in the money supply would cause the FE line to
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
C
Economics
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f the Fed wants to increase bank reserves, it can:
A. Raise the discount rate. B. Buy government bonds from the public. C. Increase the minimum reserve ratio. D. Decrease the money multiplier.
Economics
What was the response to Germany's expansionary fiscal policy from the German central bank, the Bundesbank?
A) It expanded the money supply to ease rates of interest. B) It made no policy changes. C) It contracted the money supply and raised interest rates. D) It began the process of reverting to a gold standard.
Economics