If the required reserve ratio is 5 percent and the Federal Reserve sells $10,000 worth of bonds, the money supply can potentially
A. Increase by $50,000.
B. Decrease by $200,000.
C. Decrease by $500.
D. Decrease by $50,000.
Answer: B
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Refer to the figure above. What is the total surplus after Barylia opens up to free trade?
A) $455 B) $800 C) $1,000 D) $1,200
Sweden and Norway are usually described as ________________ economies.
Fill in the blank(s) with the appropriate word(s).
For a private closed economy, an unintended decline in inventories suggests that:
A. aggregate expenditures are less than the business sector expected them to be. B. aggregate expenditures exceed production. C. actual investment exceeds saving. D. planned investment is greater than consumption.
When one market reaches a new equilibrium, the general equilibrium condition has been satisfied.
Answer the following statement true (T) or false (F)