Q5 5pts If The Real Return On Government Bonds Is 3 Percents And The Expected Rate Of Inflation Is 4 Percents Then T 1 (41.08 KiB) Viewed 18 times
Q5. (5pts) If the real return on government bonds is 3 percents and the expected rate of inflation is 4 percents, then the cost of holding money is percent. (a) 1 (b) 3 (c) 4 (d) 7
Q2. (5pts) Suppose the Fed makes an open market sales of $4 million. Assume that the money multiplier equals 2. What is the change in the money supply? (a) The money supply has increased by $2 million. (b) The money supply has increased by $8 million. (c) The money supply has decreased by $2 million. (d) The money supply has decreased by $8 million.
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