Author Question: Which of the following combinations would unambiguously increase the supply of money? a. The Fed ... (Read 38 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
Which of the following combinations would unambiguously increase the supply of money?
 a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio.
 b. The Fed conducts an open market purchase of government securities and raises the discount rate.
 c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities.
  d. All of the above would produce conflicting effects on the supply of money

Question 2

If the government fiscal deficit equals 240 million and government borrowing equals 120 million, what is the change in the money supply in the economy?
 a. 120 million
  b. 240 million
  c. 360 million
  d. 480 million
  e. 600 million



Jadwiga9

  • Sr. Member
  • ****
  • Posts: 316
Answer to Question 1

c

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

For a complete list of videos, visit our video library