Suppose the Fed sells $100 of government securities. If the desired reserve ratio is 20 percent and there is no currency drain, then the quantity of money
A) decreases by $500.
B) decreases by $80.
C) decreases by $400.
D) decreases by $100.
E) increases by $100.
A
Economics
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Traditional Keynesian economics assumes that prices are relatively flexible in response to changes in aggregate expenditures
a. True b. False Indicate whether the statement is true or false
Economics
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. uncertain; positive B. positive; uncertain C. positive; negative D. positive; positive
Economics