Which of the following is true with regard to the supply of money?
A)an open market sale of government securities will increase liquidity
B)an open market purchase of government securities will decrease liquidity
C)liquidity and the money supply are directly related
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Liquidity and the money supply are directly related because as the money supply increases, liquidity in the economy also increases, making it easier for individuals and businesses to access cash and credit.

Which of the Following Is True with Regard to the Supply