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October 22, 2014

Homework Help: Economics

Posted by Dave on Sunday, June 24, 2007 at 10:31pm.

If Mary takes money from her savings account and buys a T-bond from Jody with that money, it's:

A. An expansionary fiscal policy.
B. An example of contractionary monetary policy.
C. An example of expansionary monetary policy
D. An example of neutral (neither expansionary nor contractionary) policy.
E. The same as the Fed buying bonds.

do some research, then take a shot. What do you think? Hint: be sure to think about bank reserves and reserve requirements.

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