If the Fed sells U.S. government securities,
A) the U.S. Treasury gains some revenue.
B) the federal funds rate rises.
C) banks' reserves increase.
D) the U.S. Treasury loses some revenue.
E) None of the above answers is correct.
Correct Answer:
Verified
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Q14: If real GDP exceeds potential GDP, to
Q15: During the Great Depression, real GDP decreased,
Q16: In the short run, if the Fed
Q18: The output gap is the
A)difference between actual
Q19: In the United States,
A)the President initializes changes
Q20: The Fed decreases the quantity of money
Q21: The federal funds rate is
A)also known as
Q22: If the Fed's policies aim to increase
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