Suppose the Fed buys $100,000 of U.S. Treasury bonds from Bill Gates. If the reserve requirement is 10 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be
a. an increase by $100,000.
b. an increase by $1,000,000.
c. a decrease by $100,000.
d. a decrease by $1,000,000.
B
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Explain for each event whether it changes the quantity of real GDP supplied, short-run aggregate supply, long-run aggregate supply, or a combination of them
What will be an ideal response?
The Canadian economy can be characterized by Equation 24.2.EQUATION 24.2:C = 500 + 0.5YdTaxes = 600Equilibrium Output = $4,000Refer to Equation 24.2. At equilibrium, government purchases in Canada is
A. $1,500. B. $1,250. C. $1,000. D. cannot be determined from the given information.
Since 1970, the United States has experienced ________ recessionary periods and ________ inflationary periods.
A. 2; 4 B. 3; 0 C. 8; 1 D. 5; 2
What information will police applicants not need to furnish during recruitment?
A) drug history B) criminal activity C) political affiliation D) past traffic violations