If the Fed wanted to expand the money supply as part of an antirecession strategy, it could
a. increase the interest rate paid on excess reserves encouraging banks to extend more loans.
b. decrease the interest rate paid on excess reserves encouraging banks to extend more loans.
c. decrease the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.
d. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.
B
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Which of the following is a TRUE statement about the relationship between the price of bonds and the interest rate?
A) The prices of bonds are directly related to the interest rate. B) The prices of bonds increase when the interest rates rise. C) The prices of bonds are unrelated to the interest rate. D) The prices of bonds are inversely related to the interest rate.
The ____ is the government agency with the task of developing and enforcing policies that are aimed at protecting the environment
a. FDA b. DOI c. FEMA d. EPA