Which of the Following Will Increase the Money Supply

1 point May increase or decrease the. A A decrease in income tax rates B A decrease in government spending C Open-market purchase of securities by the central bank D Increased borrowing by the federal government by issuing new bonds E An increase in the discount rate.

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C a purchase of securities by the Fed from the public.

. An open market sale by the Fed. Every time a dollar is deposited into a bank account a banks total reserves increases. The increase will be larger the smaller is the reserve ratio.

Government sells securities to overseas purchasers. Which of the following both increase the money supply. An open market sale by the Fed d.

An increase in the discount rate and a decrease in the interest rate on reserves c. Which of the following will increase the money supply. A situation in which the money demand curve is negatively sloping.

When that loan is made it increases the money supply. A situation in which business investment is completely insensitive to interest rate changes. 2 seconds ago 0 Comments.

The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left C. Government borrowing financed by increasing money supply. It buys Treasury securities which increases the money supply.

Which of the following causes economic growth. The money supply shifts right the interest rate falls investment increases and the aggregate demand curve shifts right. An increase in the discount rate relative to the federal funds rate b.

Raising the discount rate relative to the federal funds rate D. The Federal Reserve increases the money supply by buying government-backed securities which effectively puts. A decrease in the discount rate and an increase in the interest rate on reserves d.

A decrease in the discount rate and a decrease in the interest rate on reserves. A and c e. Which of the following both increase the money supply.

The bank will keep some of it on hand as required reserves but it will loan the excess reserves out. The increase will be larger the larger is the reserve ratio. A decrease in the required reserve ratio.

An increase in money supply causes interest rates to drop and makes more money available for customers to borrow from banks. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right B. It lends money to member banks which decreases the money supply.

Which of the following will block an increase in the money supply from increasing real GDP presumably to fight a recession. Buying government securities bonds on the open market Question 5. A output B investment C consumption D all of the above E none of the above Answer.

It borrows money from member banks which increases the money supply. This will lead to an increase in the MS if the er doesnt increase. If the Fed wants to increase the money supply it buys government bonds.

Which of the following will increase the money supply. A situation in which an increase in money supply. An open market sale by the Fed C.

Increasing the required reserve ratio B. Economics questions and answers. Which of the following represents an action by the Federal Reserve that is designed to increase the money supply.

The money supply increases when the Fed A. This supplies the securities dealers who sell the bonds with cash increasing the overall money supply. A decrease in the required reserve ratio c.

When the Federal Reserve raises the required reserve ratio the banks excess reserve _____ and the money supply _____. A A decrease in the money supply A decrease in the price level An increase in nominal output An increase in consumption spending E An increase in labor productivity. An increase in the discount rate and an increase in the interest rate on reserves b.

Which of the following will lead to an increase in the money supply. D a purchase of securities by the Fed from the commercial banks. Which of the following will increase the money supply.

An increase in the discount rate relative to the federal funds rate b. Which of the following would likely increase the money supplyaAn increase in the reserves of a commercial bankbAn increase in the discount ratecThe sale of government securities by a bank to the FeddAn increase in the required reserve. Given the money demand curve an increase in money supply will cause which of the following changes.

It buys Treasury securities which decreases the money supply. This is how banks create money and increase the money supply. B an increase in the demand for money.

The increase will be larger the smaller is the reserve ratio. Each of the following will cause an increase in the money supply EXCEPT a a reduction in the required reserve ratio. If govt sells securities to the B of E this will lead to an increase in the money supply because banks deposits are seen as liquid assets.

The increase will be larger the larger is the reserve ratio. An increase in the money supply will cause an increase in which of the following variables. An open market purchase by the Fed Correct Answer.

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