When the Fed conducts open market sales, we should expect to see the money supply _____.

	A.	decrease, the interest rate increase, autonomous consumption decrease, business investment decrease, and real GDP decrease
	B.	increase, the interest rate decrease, autonomous consumption decrease, business investment decrease, and real GDP decrease
	C.	increase, the interest rate decrease, autonomous consumption increase, business investment increase, and real GDP increase
	D.	decrease, the interest rate decrease, autonomous consumption increase, business investment increase, and real GDP decrease
	E.	decrease, the interest rate increase, autonomous consumption increase, business investment increase, and real GDP increase

The money supply curve is vertical because _____.

	A.	real income does not influence the quantity of money supplied
	B.	the price level does not influence the level of spending
	C.	only the interest rate influences the quantity of money supplied
	D.	the Federal Reserve sets the money supply
	E.	nominal income does not influence the quantity of money supplied

An active monetary policy refers to the Fed's _____.

	A.	changing of the money supply to achieve its goals
	B.	frequent changes in the interest rate to offset expectations about future rates
	C.	regular changes in policy objectives
	D.	resistance to Congressional control
	E.	matching monetary policy to fiscal policy

In an expansion, which of the following is true?

	A.	Federal budget deficits tend to rise.
	B.	Federal budget deficits tend to fall.
	C.	The federal debt tends to rise faster than in a recession.
	D.	Federal government tax receipts tend to fall.
	E.	There is pressure on the Fed to monetize the debt.

 

 

Answer rating: 100% (QA)

Cincre ase the interest rate decrease autonomous consumption increase business investment increase a... View the full answer