Author Question: If the Federal Reserve purchases government securities, A) banks' reserves will increase. B) the ... (Read 94 times)

sc00by25 · **on:** Jun 29, 2018

If the Federal Reserve purchases government securities,

A) banks' reserves will increase.
B) the federal funds rate will rise.
C) the discount rate will be forced higher.
D) None of the above answers is correct because none of the effects occur.

Question 2

The United States imports cars from Japan. If the United States imposes a tariff on cars imported from Japan

A) U.S. consumers lose and Japanese producers gain.
B) U.S. tariff revenue equals the loss of U.S. consumer surplus.
C) U.S. consumers lose and U.S. producers gain.
D) U.S. car manufacturers gain revenue equal to the revenue lost by Japanese car manufacturers.