Open-market sales by the Fed a. make the price level and value of money fall. b....
Open-market sales by the Fed
| a. |
make the price level and value of money fall. |
|
| b. |
make the price level rise, and make the value of money fall. |
|
| c. |
make the price level and make the value of money rise. |
|
| d. |
make the price level fall, and make the value of money rise. |
Homework Answers
Open market sales by the FEd in the market will reduce the money supply because the FEd will be taking money in the market in exchange of the bonds. The price level will fall and people can buy more at lower price so the value of money increased.
the answer is "D".
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Open-market sales by the Fed
a.
make the price level and value of money fall.
b....
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