Multiple Choice
If people decide to hold more currency relative to deposits,the money supply
A) falls.The Fed could lessen the impact of this by buying Treasury bonds.
B) falls.The Fed could lessen the impact of this by selling Treasury bonds.
C) rises.The Fed could lessen the impact of this by buying Treasury bonds.
D) rises.The Fed could lessen the impact of the by selling Treasury bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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Q47: When the Fed purchases $1000 worth of
Q48: If the reserve ratio is 15 percent,and
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Q54: The federal funds rate is the interest