posted by .

Unemployment is on the rise though inflation is quite low. Gross Domestic Product is rising but more slowly than the goal rate. The Federal Reserve may buy government securities in open market operations in order to

A. increase the money supply and encourage economic growth.
B. decrease the money supply and encourage people to save in difficult times.
C. give consumers more money to open their own businesses.
D. force the banks to stop giving out loans in an uncertain economy.

  • Economics -

    And your answer is?

  • Economics -

    Im thinking A. Am i correct?

  • Economics -

    Yes, you're right.

  • Economics -

    increase the money supply and encourage economic growth.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Macroeconomics - inflation!

    Hi! I had to graph inflation/unemployment... Why did the inflation rate start increasing and the unemployment rate started decreasing after 2000?
  2. the federal reserve

    How does the Federeal Reserve control the amount of money in circulation?
  3. economics

    Consider an open economy in which the central bank targets the interest rate. Fill in the blanks in the following statement using the options below: If the central bank sells domestic currency in the foreign exchange market then, ceteris …
  4. Economics

    What is the relationship between the level of Gross Domestic Product and economic well-being. What factors of well-being are missing from the Gross Domestic Product?
  5. Economics.

    The buying and selling of government securities to alter the supply of money are: A. a painful necessity. B. Open market operations. C. equalizing the required reserve ration. D. tight money policies. I’m thinking its B.
  6. economics

    Assume that the reserve requirement is 20%. Also assume that banks do not hold excess reserves and there is no cash held by the public. The Federal Reserve decides that it wants to expand the money supply by $40 million. a. If the …
  7. economics

    Help me reword this?? The Fed is organized as a corporation, owned by its member banks, and directed by a government-appointed board. Monetary policy affects the size of the money supply and the level of interest rates. The first "tool"
  8. History

    1. Which data tell you how much the price of goods inflates over a period of time?
  9. Economics

    1.Gross Domestic Product Explain the difference between nominal GDP and real GDP. 2.Unemployment Name and explain the three types of unemployment. 3.Inflation Name and explain the two types of inflation. Use the following information …
  10. the fed

    Which best describes one of the ways in which the Federal Reserve has an impact on the national economy?

More Similar Questions