For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

Related Mcqs:

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

A. rise by an amount that depends on the bank’s reserve ratio B. rise by less than the amount of the deposit C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio D. fall by exactly the amount of the deposit as long as the … Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the...

An increase in the money supply aimed at increasing aggregate output is referred to as ?

A. contractionary fiscal policy B. expansionary monetary policy C. contractionary monetary policy D. expansionary fiscal policy...

One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?

A. rise; increase, increase B. rise, falls, increase C. rise, increase, falls D. rise, falls, falls...

Government Securities with terms of more than one year are called ?

A. bills of exchanges B. government bonds C. Treasury bills D. Capital bills...

The idea the government spending causes a reduction in private investment is called ?

A. fiscal drag B. investment blight C. crowding-out D. the Thatcher effects...