The Fed purchases $1 million of U.S. government securities from First Bank. The desired reserve ratio is 10 percent, the currency drain ratio is zero, and banks loan all excess reserves
The Fed's purchase increases First Bank's excess reserves by how much? A) $900,000
B) $1,000,000
C) $1,100,000
D) $10,000,000
E) $100,000
B
Economics
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An increase in the price level causes
A) the money demand curve to shift to the left. B) a movement up along the money demand curve. C) a movement down along the money demand curve. D) the money demand curve to shift to the right.
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Which of the following is not included in taxable income?
a. wages b. salaries c. alimony received d. interest on municipal bonds
Economics