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Author Question: What is a broad definition for an investment? What will be an ideal ... (Read 78 times)

jrubin

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on: Jun 30, 2018
What is a broad definition for an investment?
 
  What will be an ideal response?

Question 2

When the Fed buys a U.S. bond in the open market
 
  A) its action contracts total reserves and the money supply.
  B) total reserves increase by the amount of the purchase but the money supply stays the same.
  C) its action expands total reserves and the money supply.
  D) its action has no effect on the total reserves or the money supply because the check it writes increases reserves at one bank but they fall at another.


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djpooyouma

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Reply #1 on: Jun 30, 2018
Answer to Question 1

An investment is an action that creates a cost today but is expected to provide benefits in the future.

Answer to Question 2

C


jrubin

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Reply 2 on: Jun 30, 2018
Gracias!

matt95

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Reply 3 on: Yesterday
Excellent

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