If banks demand currency (e.g., Federal Reserve Notes) from the central bank, the effect is to:
a. Increase the nation's monetary base.
b. Decrease the nation's monetary base.
c. Leave the monetary base unchanged.
d. Increase the liabilities of the central bank.
e. None of the above is true.
.C
Economics
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Which of the following assumptions indicates that there is no trade-off between inflation and unemployment?
A) A vertical aggregate demand curve B) A vertical Phillips Curve C) Constant velocity D) Constant money supply growth rate
Economics
In practice, money supply and short-term interest rates are determined by the
a. Treasury and Commerce departments. b. Federal Open Market Committee. c. Board of Governors. d. House and Senate.
Economics