In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $200 in government bonds.
B) sold $500 in government bonds.
C) purchased $200 in government bonds.
D) purchased $500 in government bonds.
A
Economics
You might also like to view...
Suppose there are 180 million employed people and 20 million unemployed people
a. What is the unemployment rate? b. Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers. What is the new unemployment rate?
Economics
According to behavioral economics, participants in a half-marathon are likely to have trained
a. more than they planned and run faster than they anticipated. b. more than they planned but run slower than they anticipated. c. less than they planned and run slower than they anticipated. d. less than they planned but run faster than they anticipated.
Economics