The Fed increases the money supply by
举一反三
- When the Fed makes an open-market sale， it：（ ） A: increases the money multiplier (m). B: increases the currency-deposit ratio (cr). C: decreases the monetary base (B). D: increases the monetary base (B).
- Inflation occurs when: （ ） A: the stock of goods and services increases and the quantity of money in circulation decreases. B: the money supply decreases and the output increases. C: output increases faster than the money supply. D: the quantity of money in circulation rises faster than the stock of goods and services.
- When conducting an open-market sale, the Fed () A: buys government bonds, and in so doing increases the money supply. B: buys government bonds, and in so doing decreases the money supply. C: sells government bonds, and in so doing increases the money supply. D: sells government bonds, and in so doing decreases the money supply.
- If inflation increases the Fed is most likely to
- An expanded money supply ________. A: reduces the cost of borrowing B: increases interest rates C: makes it difficult for financial institutions to lend money D: diminishes entrepreneurial initiatives in a country