In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed
A) sold $1,000 in government bonds.
B) sold $100 in government bonds.
C) purchased $1000 in government bonds.
D) purchased $100 in government bonds.
D
Economics
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Taxes are the only mechanism by which the federal government earns money
Indicate whether the statement is true or false
Economics
In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that:
A) marginal cost is less than average total cost. B) average total cost is positive and constant. C) average total cost equals marginal cost. D) A and B are correct. E) B and C are correct.
Economics