In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed
A) sold $500 in government bonds.
B) sold $50 in government bonds.
C) purchased $50 in government bonds.
D) purchased $500 in government bonds.
B
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In the long run, a perfectly competitive firm will react to profits by _____
a. improving the quality of its products b. increasing the price of the good it produces c. reducing its labor inputs d. increasing its level of output
A monthly growth rate of 0.5% is an annual growth rate of:
A. 6.50% B. 6.17% C. 5.00% D. 6.00%
When considering the aggregate demand curve, the wealth effect, interest rate effect and international trade effect reinforce each other.
Answer the following statement true (T) or false (F)
Suppose when the price of pineapples goes from $5 to $3 per pineapple, production decreases from 3,500 pineapples to 2,000 pineapples per year. Using the mid-point method, the percentage change in price would be:
A. 0.50 B. 54 percent C. -50 percent D. 0.54