Author Question: If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease ... (Read 37 times)

tatyanajohnson · **on:** Jun 30, 2018

If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease the discount rate, the

a. money supply will increase.
b. money supply will decline.
c. money stock will stay the same.
d. two tools will work in opposite directions and the effect on the money supply is uncertain.

Question 2

The cost of output is income to the land, labor, capital and entrepreneurial talent used to produce it.

Indicate whether the statement is true or false