Question: answer all with small explanation 11. Which policy will increase the money supply? A. a sale of bonds by the Fed. B. an increase in

 answer all with small explanation 11. Which policy will increase the

answer all with small explanation

money supply? A. a sale of bonds by the Fed. B. an

11. Which policy will increase the money supply? A. a sale of bonds by the Fed. B. an increase in taxes by Congress. C. a purchases of bonds by the Fed. D. an increase in the interest rate. E. an increase in government spending. F. a decrease in the budget deficit. 12. Assume that you have private information that the Fed will increase the money supply next week. To maximize capital gains or to minimize capital losses, you should A. sell bonds now. B. buy bonds now. C. borrow money now. 13. The reason for the answer to question 12 is that the Fed's action will the equilibrium interest rate and will the bond price next week. A. increase, increase. B. increase, decrease. C. decrease, increase. D. decrease, decrease. 14. In a growing economy where GDP and incomes grow every year, the equilibrium interest rate will _ every year if the Fed takes no action. A. increase. B. decrease. C. not change

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