Assume that there are no excess reserves in the banking system when the reserve requirement is 20%. The purchase of $10,000 in U.S. government securities by the Fed from Academy National Bank has the potential to ultimately increase the money supply by:
a. $2,000
b. $8,000.
c. $10,000.
d. $20,000.
e. $50,000.
e
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What is the slope of the line in the figure above?
A) 0.75 B) -0.75 C) 1.33 D) -1.33 E) zero
State the law of diminishing marginal returns
What will be an ideal response?
The cost of producing one more unit of a good is called marginal cost
a. True b. False Indicate whether the statement is true or false
Assume that a hurricane in Brazil destroys half of the coffee crop. Considering that Brazil is a major coffee producing country, consumers expect the price of coffee to increase in the near future. How does this reflect on the demand for coffee?
a. There is a movement upward along the demand curve for coffee. b. The demand curve for coffee shifts inward. c. The demand curve for coffee shifts outward. d. There is a movement downward along the demand curve for coffee. e. The demand for coffee declines.