« previous next »

Author Question: An open market _______ of 100 million of securities ______. A. purchase; increases bank reserves ... (Read 101 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jun 29, 2018
An open market _______ of 100 million of securities ______.
 
  A. purchase; increases bank reserves
  B. sale; increases bank reserves
  C. purchase; decreases the Fed's liabilities
  D. sale; increases the Fed's liabilities

Question 2

Refer to Figure 5-3. The efficient output level is
 
  A) Qo. B) Qo - Qm. C) Qm. D) Qn.


TheDev123

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

A When the Fed purchases government securities, it effectively pays for (at least part of) the purchasing by increasing banks' reserves.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Your heart beats over 36 million times a year.

Hare running in open field Hare running in open field
OPEN GLOVING 2 OPEN GLOVING 2
Bank reconciliation form. Bank reconciliation form.
A. Open portable massage table on its side. B. Straighten out legs completely and check that leg ... A. Open portable massage table on its side. B. Straighten out legs completely and check that leg ...
DNA bending in an open-promoter complex DNA bending in an open-promoter complex
Afterload is the pressure that the ventricles must overcome in order to open the aortic and pulmonic Afterload is the pressure that the ventricles must overcome in order to open the aortic and pulmonic
Video: How proteins function? How do proteins work?

For a complete list of videos, visit our video library