Author Question: Other things equal. an open market purchase of government securities by the Fed will not result in ... (Read 66 times)

madam-professor · **on:** Jun 30, 2018

Other things equal. an open market purchase of government securities by the Fed will not result in which of the following?
a. increased bond prices
b. a reduced volume of loans issued by the commercial banking system
c. decreased interest rates
d. an increase in the price level

Question 2

The long-run Phillips curve assumes that every unemployed worker who is looking for a job has a constant reservation wage.
a. True
b. False
Indicate whether the statement is true or false