How does a bond sale by the Fed affect the money supply?
(A) The sale increases the money supply but not in the proportion that the multiplier effect would suggest.
(B) The sale increases the money supply.
(C) It does not affect the money supply.
(D) The sale decreases the money supply.
Answer: (D) The sale decreases the money supply.
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Goods that are used for the production of other goods are referred to as:
A) consumer durable goods. B) consumer capital. C) physical capital. D) public goods.
The figure shows the market for rental units in Gladstone. The market is in equilibrium. The government now introduces a rent ceiling of $500 a month. The price of a rental unit ________ and the number of units rented ________
A) increases by $500 per month; decreases B) increases by $100 per month; increases C) decreases by $100 per month; decreases D) remains the same; remains the same