Author Question: If the Fed makes an open market purchase of 1 million of government securities, the monetary base ... (Read 61 times)

kfurse · **on:** Jun 29, 2018

If the Fed makes an open market purchase of 1 million of government securities, the monetary base

A) is unchanged in size, though its composition changes.
B) will decrease by a multiple of 1 million over time.
C) will increase by a multiple of 1 million over time.
D) is decreased by 1 million.
E) is increased by 1 million.

Question 2

The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. The equilibrium level of real GDP is

A) 700 billion. B) 400 billion. C) 500 billion. D) 600 billion. E) 800 billion.