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Author Question: If the Fed carries out an open market operation and sells U.S. government securities, the federal ... (Read 104 times)

Arii_bell

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on: Jun 29, 2018
If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate ________ and the quantity of reserves ________.
 
  A) falls; decreases
  B) rises; increases
  C) rises; decreases
  D) rises; does not change
  E) falls; increases

Question 2

The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment.
 
  A) surplus; raises; decreases
  B) surplus; lowers; decreases
  C) deficit; lowers; decreases
  D) deficit; lowers; increases
  E) deficit; raises; decreases


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ebonylittles

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

C

Answer to Question 2

E


Arii_bell

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Animal_Goddess

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Reply 3 on: Yesterday
Excellent

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