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ntral bank sells government securities from the private sector-money markets other things being equal, what would the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the central bank sells government securities from the private sector-money markets other things being equal, what would the effect be on the following? a)Aggregate demand b) Aggregate supply c)economic activity d)Inflation e)Unemployment

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Aggregate demand is more likely to than aggregate supplyl in the short run a- bigger leakages b-national income c-domestic investment d- shift substantually