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Author Question: The sale of government securities by the Fed leads to A) a decrease in bank reserves. B) a ... (Read 106 times)

c0205847

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on: Jun 29, 2018
The sale of government securities by the Fed leads to
 
  A) a decrease in bank reserves.
  B) a contraction in bank lending.
  C) a decrease in the monetary base.
  D) All of the above answers are correct.

Question 2

In the above figure, the shift from point C to point B might be the result of
 
  A) an increase in the price level.
  B) a decrease in the price level.
  C) a decrease in government expenditures.
  D) an increase in the quantity of money.


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SVictor

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


c0205847

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Reply #2 on: Jun 29, 2018
Thank you :)


SVictor

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Reply #3 on: Jun 29, 2018
Happy to help you


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