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Author Question: An increase in the output gap causes the demand for real balances A) to rise and the interest ... (Read 33 times)

Kikoku

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on: Jun 30, 2018
An increase in the output gap causes the demand for real balances
 
  A) to rise and the interest rate to fall.
  B) to fall and the interest rate to rise.
  C) and the interest rate to fall.
  D) and the interest rate to rise.

Question 2

In managing the monetary base, the Fed most often uses
 
  A) open market purchases.
  B) printing money.
  C) discount loans.
  D) tax increases.


mcinincha279

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

D

Answer to Question 2

A


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Kikoku

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Reply #2 on: Jun 30, 2018
Thank you :)


mcinincha279

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Reply #3 on: Jun 30, 2018
Happy to help you


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