Comparing the Effect on the Monetary Base Between an Open

question 34

Multiple Choice

Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public,the monetary base

• A)increases by a larger amount if the general public sells the securities than if a bank sells the securities.
• B)increases by a larger amount if a bank sells the securities than if the general public sells the securities.
• C)does not change if it is the general public that sells the securities.
• D)increases by the same amount if the general public sells the securities or if a bank sells the securities.
• E)decreases by the same amount if the general public sells the securities or if a bank sells the securities.

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Definitions:

American Family

A family unit or household structure in the United States, which can vary widely in composition and values.

Decline

A process of becoming smaller, fewer, or less; a reduction in size, quantity, quality, or strength.

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A German philosopher, social scientist, and revolutionary who, alongside Karl Marx, co-founded Marxist theory.

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The unequal treatment or perception of individuals based on their gender.