Author Question: Which of the following combinations would not produce conflicting effects on the supply of money? ... (Read 14 times)

Awilson837

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Which of the following combinations would not produce conflicting effects on 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 and lowers the discount rate.
 c. The Fed pays a higher interest rate on bank reserves and conducts an open market sale of government securities.
  d. None of the above would produce conflicting effects on the supply of money

Question 2

Government spending can be financed by all of the following, except:
 a. personal income taxes.
  b. investment spending.
  c. government borrowing.
  d. money creation.
  e. excise taxes.



Dunkey

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Answer to Question 1

b

Answer to Question 2

b



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