When a commercial bank borrows from the Federal Reserve,
A) Treasury liabilities rise.
B) Treasury assets rise.
C) Federal Reserve assets rise.
D) bank reserves fall.
C
You might also like to view...
An increase in the U.S. exchange rate will make U.S. exports.
A) less attractive to foreigners and imports from other countries less attractive to the United States. B) less attractive to foreigners and imports from other countries more attractive to the United States. C) more attractive to foreigners and imports from other countries more attractive to the United States. D) more attractive to foreigners and imports from other countries less attractive to the United States.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower