Author Question: When the Federal Reserve buys bonds on the open market, it decreases the money supply. Indicate ... (Read 100 times)

lunatika

  • Hero Member
  • *****
  • Posts: 548
When the Federal Reserve buys bonds on the open market, it decreases the money supply.
 
  Indicate whether the statement is true or false

Question 2

The actual money multiplier multiplied by the change in total reserves is the
 
  A) actual change in the money supply. B) potential money multiplier.
  C) federal funds rate. D) discount rate.



Chelseyj.hasty

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

FALSE

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

For a complete list of videos, visit our video library