. 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.

Expert Solution

Rahul Sunny answered 9 months ago

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