Author Question: Which of the following combinations would unambiguously increase the supply of money? a. The Fed ... (Read 67 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
Which of the following combinations would unambiguously increase the supply of money?
 a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio.
 b. The Fed conducts an open market purchase of government securities and raises the discount rate.
 c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities.
  d. All of the above would produce conflicting effects on the supply of money

Question 2

If the government fiscal deficit equals 240 million and government borrowing equals 120 million, what is the change in the money supply in the economy?
 a. 120 million
  b. 240 million
  c. 360 million
  d. 480 million
  e. 600 million



Jadwiga9

  • Sr. Member
  • ****
  • Posts: 316
Answer to Question 1

c

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library