An increase in the output gap causes the demand for real balances A) to rise and the interest ...

Author Question: An increase in the output gap causes the demand for real balances A) to rise and the interest ... (Read 32 times)

Kikoku

Hero Member
Posts: 540

on: Jun 30, 2018

An increase in the output gap causes the demand for real balances

A) to rise and the interest rate to fall.
B) to fall and the interest rate to rise.
C) and the interest rate to fall.
D) and the interest rate to rise.

Question 2

In managing the monetary base, the Fed most often uses

A) open market purchases.
B) printing money.
C) discount loans.
D) tax increases.

mcinincha279

Sr. Member
Posts: 316

Reply #1 on: Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

A

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Kikoku

Hero Member
Posts: 540

Reply #2 on: Jun 30, 2018

Thank you

mcinincha279

Sr. Member
Posts: 316

Reply #3 on: Jun 30, 2018

Happy to help you

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