Suppose that the Fed undertakes an open market sale, selling $3 million worth of securities to a bank. If the required reserve ratio is 11%, checkable deposits (or the money supply), would _______________ by ________________ million, assuming that there are no cash leakages and that banks hold zero excess reserves
A) rise; $27
B) decline; $33
C) decline; $27
D) rise; $33
C
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Answer the following statement true (T) or false (F)
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Under a negative income tax program,
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