Question

If the economy is at potential GDP and the Fed makes an open market purchase of government securities, in the short run bank reserves__________ , the nominal interest rate__________ , and the aggregate demand curve __________.

Accepted Answer

A)   increase; falls; shifts rightward
B)   increase; rises; shifts rightward
C)   stay constant; does not change; does not shift
D)   decrease; falls; shifts rightwardE) None of the above
F) A) and B)

Review

If the economy is at potential GDP and the Fed makes an open market purchase of government securities, in the short run bank reserves , the nominal interest rate , and the aggregate demand curve __.

Correct Answer
verified

Review

If the economy is at potential GDP and the Fed makes an open market purchase of government securities, in the short run bank reserves__________ , the nominal interest rate__________ , and the aggregate demand curve __________.

Correct AnswerverifiedShow Answer

If the economy is at potential GDP and the Fed makes an open market purchase of government securities, in the short run bank reserves , the nominal interest rate , and the aggregate demand curve __.

Correct Answer
verified