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).
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).
举一反三
- When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________. A: increases; decreases B: decreases; increases C: stays the same; decreases D: increases; stays the same
- 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.
- The Fed increases the money supply by
- In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment. A: raises; increases B: raises; decreases C: lowers; increases D: lowers; decreases
- The monetary base is also affected when the central bank makes a loan to a financial institution. ( ) A: False B: True