Multiple Choice
If the Fed sells U.S.government securities to drain reserves from banks,which of the following will probably occur?
A) The demand for money will increase and the interest rate will rise.
B) The money supply will increase and the interest rate will fall.
C) The interest rate will rise and the quantity of money demanded will fall.
D) The money supply will decrease and the interest rate will fall.
E) The interest rate will fall and the quantity of money demanded will increase.
Correct Answer:
Verified
Correct Answer:
Verified
Q142: As the interest rate decreases,<br>A)the demand for
Q143: There is considerable disagreement about whether the
Q144: Which of the following statements best describes
Q145: Which of the following is not assumed
Q146: The interest rate that banks charge one
Q148: Exhibit 15-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 15-7
Q149: A decrease in the interest rate will<br>A)shift
Q150: While monetary targets are important,also significant is
Q151: The Fed's grip is tightest on the<br>A)prime
Q152: If the Fed increases the money supply,GDP<br>A)increases