We asked five students to give us three possible sources of an increase of the monetary base in the economy. Only one of the students came up with a completely correct list. This list included: an increase in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank. an increase in central bank lending to banks, a sale of government bonds by the central bank, a sale of foreign currency by the central bank. a decrease in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank an increase in central bank lending to banks, an increase in bank lending to firms and households, a purchase of government bonds by the central bank
We asked five students to give us three possible sources of an increase of the monetary base in the economy. Only one of the students came up with a completely correct list. This list included: an increase in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank. an increase in central bank lending to banks, a sale of government bonds by the central bank, a sale of foreign currency by the central bank. a decrease in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank an increase in central bank lending to banks, an increase in bank lending to firms and households, a purchase of government bonds by the central bank
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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We asked five students to give us three possible sources of an increase of the monetary base in the economy. Only one of the students came up with a completely correct list. This list included:
We asked five students to give us three possible sources of an increase of the monetary base in the economy. Only one of the students came up with a completely correct list. This list included:
an increase in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank.
an increase in central bank lending to banks, a sale of government bonds by the central bank, a sale of foreign currency by the central bank.
a decrease in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank
an increase in central bank lending to banks, an increase in bank lending to firms and households, a purchase of government bonds by the central bank
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