When the Fed fights inflation, A. decrease in the supply of loanable funds raises the long-term interest rate and increases investment B. a decrease in the federal funds rate decreases aggregate demand ○ C. an open market purchase increases the federal funds rate ○ D. a decrease in bank reserves decreases the quantity of money demanded

Explain the​ Fed's policy tools and briefly describe how each works. The Fed uses its policy tools to​ _______.     A. regulate the amount of money circulating in the United States by printing enough money each year for the purchase of consumer goods and services   B. influence the exchange rate and the​ country's trade balance by adjusting the interest rate   C. keep the government budget debt under​ $20 trillion by adjusting loans to Congress   D. influence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system

Money market equilibrium depends on what the central bank targets. How does the money market adjust to the equilibrium? If the central bank targets _______. A. the short-term interest rate, the quantity of money demanded adjusts B. the quantity of money demanded, the short-term interest rate adjusts C. the monetary base, the quantity of money supplied adjusts D. the quantity of money, the short-term interest rate adjusts

In the liquidity trap a. A small change in interest rates produces a small change in the quantity of money demanded b. A small change in interest rates produces no change in the quantity of money demanded c. Money demand is not affected by interest rates d. A small change in interest rates produces a very large change in the quantity of money demanded

If the Fed increases the monetary base, the a. federal funds rate rises. b. federal funds rate falls. c. quantity of money decreases. d. demand for money decreases.

When the Fed buys government bonds, a- the money supply decreases and the federal funds rate increases. b- the money supply decreases and the federal funds rate decreases. c- the money supply increases and the federal funds rate decreases. d- the money supply increases and the federal funds rate increases.

When the Fed increases the money supply, we expect   a. interest rates and stock prices to rise.   b. interest rates to fall and stock prices to rise.   c. interest rates to rise and stock prices to fall.   d. interest rates and stock prices to fall.

Read the event The Federal Reserve raises reserve requirements. What would likely result from this event? A. An economy would see a slight decrease in aggregate demand. B. Interest rates on loans decline. C. Consumer demand would increase thus increasing prices. D. Inflation would reach levels that are acceptable for full employment.

In the short run, when the Fed decreases the quantity of money A. the demand for money increases. B. bond prices rise and the interest rate falls. C. bond prices fall and the interest rate rises. D. the supply of money curve shifts rightward.

Economics If the Fed increases the monetary base by $73 million and the money multiplier is 1.6, money supply will increase by $______ million.