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Author Question: If the Fed purchases government securities in the open market, _____. a. the money supply will ... (Read 89 times)

sjones

  • Hero Member
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  • Posts: 520
on: Jun 30, 2018
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

  • Sr. Member
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  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

a


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