If the Federal Reserve sells $1,500 in bonds and the resulting money supply change is $7,500, what is the required reserve ratio?
a. 5.0
b. 0.2
c. 0.1
d. 0.4
e. 0.8
B
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A firm cannot control all of the factors that allow it to make economic profits. Which of the following is an example of an uncontrollable factor?
A) hiring competent managers B) input prices C) product differentiation D) producing at a lower average total cost than competing firms
According to the traditional classical school of thought, aggregate supply is vertical both in the short run and in the long run
a. True b. False Indicate whether the statement is true or false
Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?
a.
$40 billion
b.
$48 billion
c.
$50 billion
d.
$60 billion
M1 money includes all but which one of the following?
A. checkable deposits B. savings accounts C. paper money D. coins