Assuming that the Federal Reserve Banks sell $40 million in government securities to commercial banks and the reserve ratio is 20 percent, then the effect will be to reduce:
A. Excess reserves by $8 million
B. Excess reserves by $200 million
C. The money supply by potentially $200 million
D. The money supply by potentially $400 million
C. The money supply by potentially $200 million
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The Phillips curve relates the inflation rate to
a. the unemployment rate. b. GDP. c. disposable personal income. d. the interest rate.
Why is the benefit of something measured by what you are willing to give up?
What will be an ideal response?
_____________ consists of the social and managerial processes through which solutions are first translated into social use in a given culture
a. Innovation b. Invention c. Diffusion d. Intellect
Suppose a monopolist's marginal revenue equals marginal cost at an output of 100 . If price is $250, and average cost is $50 at this output, compute the monopolist's profit?
a. Profit = $250 b. Profit = $150 c. Profit = $15,000 d. Profit = $20,000