The sale of Treasury securities by the Federal Reserve will, in general,
A) decrease the quantity of reserves held by banks.
B) not change the money supply.
C) not change the quantity of reserves held by banks.
D) increase the quantity of reserves held by banks.
A
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If income is equally distributed, the Gini ratio is zero
Indicate whether the statement is true or false
You have some estimates of national accounts numbers for a closed economy for the coming year. Under one set of expectations, government purchases will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Under another set of expectations, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 million,
and investment will be $40 billion. Based on these numbers in the first case there should be a a. $15 billion surplus, and in the second case a $10 billion surplus. b. $15 billion surplus, and in the second case a $30 billion deficit. c. $5 billion surplus, and in the second case a $10 billion deficit. d. $5 billion surplus, and in the second case a $30 billion deficit.