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Author Question: The Fed sells 1 million in bonds to a bond dealer. The bond dealer's bank experiences A) a ... (Read 170 times)

kaid0807

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The Fed sells 1 million in bonds to a bond dealer. The bond dealer's bank experiences
 
  A) a decrease in assets of 1 million as its reserves decrease and an increase in liabilities of 1 million as its deposits rise.
  B) a decrease in assets of 1 million as its reserves decrease and a decrease in liabilities of 1 million as its deposits fall.
  C) no change in assets or liabilities.
  D) an increase in assets of 1 million as its deposits fell by 1 million, and a decrease in liabilities as its reserves fell by 1 million.

Question 2

Using the data in the table above, the growth rate of real GDP for 2010 is equal to
 
  A) 4.76 percent. B) 10.0 percent. C) 9.09 percent. D) 5.00 percent. E) 7.00 percent.



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leeeep

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Answer to Question 1

B

Answer to Question 2

E





 

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