When the Fed sells government securities
A) reserves decrease, leading to a decrease in the money supply by an amount more than the sale of the government securities.
B) reserves increase, leading to a increase in the money supply by an amount more than the sale of the government securities.
C) reserves increase, leading to a decrease in the money supply by an amount more than the sale of the government securities.
D) reserves decrease, leading to a increase in the money supply by an amount more than the sale of the government securities.
Question 2
________ in the United States ________ in most European countries.
A) GDP per hour; is greater than GDP per hour
B) Average weekly hours; are greater than average weekly hours
C) The Okun Gap; is equal to the Okun Gap
D) The Lucas Wedge; is greater than the Lucas Wedge
E) Both A and B are true.
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