In: Economics
. True or false, explain you answers.
Lenders sell bonds, and borrowers buy them.
An increase...
. True or false, explain you answers.
- Lenders sell bonds, and borrowers buy them.
- An increase in reserve requirements raises the reserve ratio
and decreases the money supply.
- When the government runs a budget deficit, interest rates rise,
and investment falls.
Joan uses some of her income to buy mutual fund shares. A
macroeconomist would refer to Joan’s purchase as investment.