Question

An increase in the money supply can be caused by which of the following monetary tools?...

  1. An increase in the money supply can be caused by which of the following monetary tools?

Print more money

Increase in government spending

Decrease in taxes

Purchase of Bonds by the federal reserve

When Discussing wages, incomes and interest rates you always want to focus on the -----

Nominal Value

Real value

both are needed

none of the above

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Answer #1

1) An increase in the money supply can be caused by which of the following monetary tools:

The money supply is increased when the Fed purchase bonds using open market operations

option(D)

2) When Discussing wages, incomes and interest rates you always want to focus on the

These values are measured in both nominal and real terms

option(C)

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