Author Question: If the Fed buys a U.S. government bond from a member of the public, a. the banking system has more ... (Read 37 times)

colton · **on:** Jun 30, 2018

If the Fed buys a U.S. government bond from a member of the public,
a. the banking system has more reserves and the money supply tends to grow.
b. the banking system has less reserves and the money supply tends to grow.
c. the banking system has more reserves and the money supply tends to fall.
d. the banking system has less reserves and the money supply tends to fall.

Question 2

U.S. economic data from 1955 to 2000 show that both unemployment and inflation rates increased during that period.
a. True
b. False
Indicate whether the statement is true or false