If the actual money multiplier equals the potential money multiplier and if the Federal Reserve wishes to increase the money supply by $500 when the reserve ratio is 10 percent, it should
A) buy $5000 of government bonds. B) sell $5000 of government bonds.
C) sell $50 of government bonds. D) buy $50 of government bonds.
D
Economics
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Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B, and each has a cost function TC = 2 + Q
Compare the firms' profits if they behave as Cournot duopolists with their profits if they form a cartel and share the market.
Economics
A one-time rise in the price level is:
A. not inflation. B. inflation if that rise is above 10 percent. C. inflation if that rise is above 5 percent. D. inflation if that rise is above 15 percent.
Economics