Based on the above table, an open market operation in which the Fed purchased $100,000 of government securities would

A) lead to a maximum potential expansion of the money supply of $1 million.
B) create a reserve deficiency for the banking system.
C) cause demand deposits to fall by $100,000.
D) lead to a maximum potential expansion of the money supply of $100,000.


A

Economics

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Lowering the discount rate has the effect of ________.

A. forcing commercial banks to call in outstanding loans from their best customers B. turning required reserves into excess reserves C. turning excess reserves into required reserves D. making it less expensive for commercial banks to borrow from central banks

Economics

Which of the following observations is true?

A. In the long run, more costs become variable. B. Fixed costs cannot be completely varied if the time period is sufficiently long. C. Fixed costs arise when some types of inputs can be bought only in big batches. D. Variable costs arise when inputs have a large productive capacity.

Economics

Table 31.1Wage rate (dollars per hour)Labor demanded (workers)Total labor cost(dollars per hour)Marginal Wage  (dollars per worker)$260________---222________________184________________146________________108________________Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates. Complete the table by computing the total wage bill (total labor cost) and the marginal wage. Assume the union collects dues of 1 percent of the total wage bill. How many workers would the union want hired in Table 31.1 if its goal was to maximize the amount of dues collected?

A. 8. B. 2. C. 4. D. 6.

Economics

Which of the following about inventory changes and GDP is true?

What will be an ideal response?

Economics