If the Fed conducted an open market sale of government bonds and raised the discount rate:
a. the money supply would increase

b. the money supply would decrease.
c. the money supply would not change.
d. the money supply could either increase or decrease.

b

Economics

You might also like to view...

Economic integration refers to the growth of market linkages in:

A) goods only. B) labor. C) capital and labor only. D) goods, capital, and labor.

Economics

Figure 4.4 illustrates the supply of tacos. A decrease in the supply of tacos is represented by a movement from

A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.

Economics