The Fed buys $50,000 of government securities. The desired reserve ratio is 10 percent and the currency drain ratio is zero. What will be the change in the quantity of money?
A) $0 B) $5,000 C) $50,000 D) $5,000,000 E) $500,000
E
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Examining the conditions that could lead to a recession in an economy is an example of a macroeconomic topic
Indicate whether the statement is true or false
Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
A. increased household saving. B. decreased household saving. C. a depreciation of the dollar. D. an increase in inflation rates.
The present value of $1 million to be received 10 years from now will
a. decrease if the interest rate rises. b. be greater if the funds were going to be received 15 years from now. c. be greater than $1 million. d. increase if the interest rate were to rise from 4 percent to 8 percent.
The Latin phrase ceteris paribus refers to holding other variables constant.
Answer the following statement true (T) or false (F)