Author Question: When the government raises spending to promote economic growth, the Fed sells government bonds on ... (Read 115 times)

K@ · **on:** Jun 30, 2018

When the government raises spending to promote economic growth, the Fed sells government bonds on the open market. This implies that the Federal Reserve and the federal government are following different policy goals.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the government removes a binding price ceiling from a market, then the price received by sellers will
a. decrease, and the quantity sold in the market will decrease.
b. decrease, and the quantity sold in the market will increase.
c. decrease, and the quantity sold in the market will increase.
d. increase, and the quantity sold in the market will increase.