Keynesians believe that the transactions demand for money influences the

Explain what happens to the money supply, interest rates, investment spending and GDP when the Fed makes open market bond purchases

What will be an ideal response?

Which of the following would create the most money?

(A) The initial deposit is $3,000 and the required reserve ratio is 10 percent. (B) The initial deposit is $7,500 and the required reserve ratio is 25 percent. (C) The initial deposit is $4,500 and the required reserve ratio is 15 percent. (D) The initial deposit is $6,500 and the required reserve ratio is 20 percent.