When the Fed buys government securities, the immediate effect of the purchase is that banks'
A) reserves decrease.
B) loans decrease.
C) reserves increase.
D) assets increase.
E) deposits increase.
C
Economics
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Jane is currently developing a model to explain the national unemployment rate. This is an example of
A) a microeconomic topic. B) normative analysis. C) positive analysis. D) how people act in an irrational manner.
Economics
If policymakers decrease aggregate demand, then in the long run
a. prices will be lower and unemployment will be higher. b. prices will be lower and unemployment will be unchanged. c. prices and unemployment will be unchanged. d. None of the above is correct.
Economics