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Author Question: If the Fed decides to use an open market operation to reduce the money supply by 1 million, and if ... (Read 121 times)

jhjkgdfhk

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on: Jun 30, 2018
If the Fed decides to use an open market operation to reduce the money supply by 1 million, and if the money multiplier is 10, then what total amount of Treasury securities must the Fed initially sell?
 a. 10,000,000.
  b. 1,000,000.
  c. 100,000.
  d. 10,000.

Question 2

If population grows faster than GDP, then per capita GDP must fall.
 a. True
  b. False
  Indicate whether the statement is true or false


joneynes

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

c

Answer to Question 2

True


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