If the Fed's Open-Market Operations Expand the Money Supply, One

question 70

Multiple Choice

If the Fed's open-market operations expand the money supply, one can expect

• A)a decrease in excess reserves.
• B)bond prices to rise.
• C)interest rates to rise.
• D)open-market sales of T-bills.

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Definitions:

Ticket Price

The cost associated with purchasing a ticket to gain entry to an event, performance, or mode of transportation.

All You Can Eat

A service model where diners pay a set fee to consume as much food as they desire from a specific selection.

Consumption

The use of goods and services by households.

Additional Item

A supplementary product or service added to an existing order or purchase.