This topic contains a solution. Click here to go to the answer

Author Question: If the Fed sells U.S. government securities, A) the U.S. Treasury loses some revenue. B) the ... (Read 91 times)

nramada

  • Hero Member
  • *****
  • Posts: 580
If the Fed sells U.S. government securities,
 
  A) the U.S. Treasury loses some revenue.
  B) the U.S. Treasury gains some revenue.
  C) banks' reserves increase.
  D) the federal funds rate rises.
  E) None of the above answers is correct.

Question 2

If there is no Ricardo-Barro effect, an increase in the budget deficit
 
  A) decreases the amount of investment.
  B) increases the supply of loanable funds.
  C) lowers the equilibrium real interest rate.
  D) increases the amount of investment.
  E) decreases the demand for loanable funds.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ilianabrrr

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

D

Answer to Question 2

A




nramada

  • Member
  • Posts: 580
Reply 2 on: Jun 29, 2018
Wow, this really help


ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
Excellent

 

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

For a complete list of videos, visit our video library