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Author Question: When the Fed buys government securities, the immediate effect of the purchase is that banks' A) ... (Read 37 times)

fbq8i

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on: Jun 29, 2018
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.

Question 2

In the long run, the price level adjusts
 
  A) to achieve money market equilibrium.
  B) so that the inflation rate equals the growth rate of real GDP.
  C) so that the inflation rate equals zero.
  D) so that the inflation rate is moderate.
  E) so that the real interest rate equals the nominal interest rate.


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izzat

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A


fbq8i

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Reply #2 on: Jun 29, 2018
Thank you :)


izzat

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Reply #3 on: Jun 29, 2018
Happy to help you


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