Suppose the Fed injects $50 billion of new money by buying U.S. treasury bonds from the public. If the required reserve ratio is 10 percent, banks convert all excess reserves into loans, and the public hold all their money in their checking accounts rather than in cash, then by how much will the money supply ultimately increase due to this injection?
a. $5 billion
b. $50 billion
c. $500 billion
d. $950 billion
c
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If U.S. net exports are positive
A) other countries borrow from the United States to pay for some of the goods they purchase from the United States. B) other countries make loans to the United States so that the United States can pay for some of the goods it purchases from other countries. C) the United States sells some of the assets it owns in other countries to pay for some of the goods it sells to other countries. D) the United States borrows from other countries to pay for some of the goods the United States purchases from them.
A good that a person can be prevented from consuming is referred to as a(n) _____ good
a. non-excludable b. excludable c. rival d. non-rival
Each of the following took place in the latter half of the 1990s except
A. a falling rate of inflation. B. a rising stock market. C. an economic boom. D. a rising unemployment rate.
Researchers find that the income elasticity of poultry demand in Indonesia is 1.2. This implies that if income is expected to grow at 5%, then projected demand for poultry will:
a. Increase by 5% b. Increase by 6% c. Increase by 6.2% d. Increase by 4.2%