Author Question: If the Fed buys U.S. government securities from banks, the federal funds rate ________ and banks' ... (Read 149 times)

leo leo · **on:** Jun 29, 2018

If the Fed buys U.S. government securities from banks, the federal funds rate ________ and banks' reserves ________.

A) does not change; increases
B) falls; decrease
C) rises; increase
D) rises; decrease
E) falls; increase

Question 2

In the long run, the inflation rate

A) must be equal to the natural unemployment rate.
B) can take on any value.
C) is equal to the natural inflation rate.
D) is zero.
E) cannot be negative.