Author Question: Which of the following combinations would unambiguously increase the supply of money? a. The Fed ... (Read 75 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?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

For a complete list of videos, visit our video library