The Fed conducts an open market purchase of securities of $5,000. If the currency drain ratio is 0 percent and the desired reserve ratio is 10 percent, then the total increase in the quantity of money is
A) $4,000. B) $5,000. C) $20,000. D) $50,000. E) $10,000.
D
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Refer to Game Matrix V. Which of the following values of X and Y result in the only Nash Equilibrium being (No, No) and there not being a Prisoners’ Dilemma?
a. X = 21, Y = 9. b. X = 19, Y = 11 c. X = 31, Y = 11. d. It is not possible for (No, No) to be a Nash Equilibrium and for there not to be a Prisoners’ Dilemma.
The production possibilities frontier for a country is usually drawn
A. as a straight line, sloping downward. B. as a straight line, sloping upward. C. bowed outward from the origin. D. bowed inward toward the origin. E. as a dotted line when sloping downward and as a full line when sloping upward.
Marginal costs are the costs relevant to a decision because they
A) are the costs that will be affected by the decision. B) the cost of producing one more unit of output. C) total cost divided by units of output. D) total cost minus sunk costs.
Refer to Figure 11-3. Technological change is shown in the figure above by the movement from
A) B to E. B) B to A. C) B to C. D) B to D.