WORKSHEET 3-question

WORKSHEET 3-question - 2020-100 WORKSHEET 1. An increase in...

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2020.100 WORKSHEET 1. An increase in the interest rate a. induces firms to invest less. b. induces households to increase consumption. c. increases aggregate demand for goods and services. d. All of the above are correct. 2. How would the Fed use open market operations (OMO) to raise interest rates? a. The Fed sells bonds to banks. b. The Fed buys bonds from banks. c. The Fed reduces the discount rate. d. The Fed sells gold certificates. 3. If the interest rate is below the Fed’s target, the Fed would a. buy bonds to increase the money supply. b. buy bonds to decrease the money supply. c. sell bonds to increase the money supply. d. sell bonds to decrease the money supply. 4. When the Federal Reserve conducts open market transactions, it a. issues Federal Reserve notes. b. buys or sells government bonds from banks. c. lowers the discount rate. d. Both b and c are open market operations. 5.
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WORKSHEET 3-question - 2020-100 WORKSHEET 1. An increase in...

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