Question
If the Federal Reserve wanted to offset a cyclical downturn in overall expenditures, it should A. sell bonds to decrease the money supply thus increasing
If the Federal Reserve wanted to offset a cyclical downturn in overall expenditures, it should
A. sell bonds to decrease the money supply thus increasing the interest rates to decrease business investment and therefore decreasing the overall level of expenditures and decreasing the price level.
B. sell bonds to increase the money supply thus decreasing the interest rates to increase business investment and therefore increasing the overall level of expenditures and increasing the price level.
C. buy bonds to decrease the money supply thus increasing the interest rates to decrease business investment and therefore decreasing the overall level of expenditures and decreasing the price level.
D. buy bonds to increase the money supply thus decreasing the interest rates to increase business investment and therefore increasing the overall level of expenditures and increasing the price level.
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International economics
Authors: Robert J. Carbaugh
13th Edition
978-1439038949, 1439038945, 978-8131518823
