If the Fed purchases government securities in the open market, ...

[sjones]

If the Fed purchases government securities in the open market, _____.
 a. the money supply will decrease
 b. the money supply will increase only if the seller of those securities is a commercial bank
 c. the money demand will increase immediately
 d. the money demand will decrease immediately
 e. the money supply will increase through the commercial banking system regardless of who the seller is

Question 2

If incomes in the United States increase, other things equal, then U.S. _____.
 a. imports increase and exports remain constant
  b. exports increase and imports decrease
 c. imports decrease and exports decrease
 d. imports remain constant and exports increase
  e. net exports remains constant

[livaneabi]

Answer to Question 1

e

Answer to Question 2

a