If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to make?
a. $75,000
b. $12,000
c. $1,000
d. $30,000
e. $3,000
B
Economics
You might also like to view...
The financial statement that sums up a firm's revenues, costs, and profit over a period of time is its
A) income statement. B) balance sheet. C) dividend yield statement. D) price-earnings statement.
Economics
The saving schedule would be shifted upward by:
A. An increase in the value real and financial assets B. A reduction in real interest rates C. Expectations of rising prices of products D. A decrease in taxes
Economics