Assuming a reserve requirement of 10 percent, if the Fed sells $20 billion in bonds to the public, the lending capacity of the system will eventually
A. Decrease by $20 billion.
B. Increase by $200 billion.
C. Decrease by $200 billion.
D. Increase by $20 billion.
Answer: C
Economics
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Suppose you purchase a new home for $75,000, making a down payment of 20% and taking out a mortgage on the balance
What is the return on your investment in your home if one year later the price of the home increases by 5%? What if the price of the home decreases by 5%?
Economics
Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?
A) a decrease in supply and an increase in demand B) a decrease in demand C) an increase in supply and an increase in demand greater than the increase in supply D) a decrease in supply and a decrease in demand
Economics