Suppose that the Fed purchases $1,000,000 worth of bonds and that the reserve ratio is 25 percent. Then, the maximum potential expansion of deposits is
A) $4,000,000. B) $400,000. C) $25,000,000. D) $10,000,000.
A
Economics
You might also like to view...
A variable cost is one that changes
a. in the long run only b. in the short run only c. year to year d. month to month e. as output changes
Economics
Housing subsidies for low-income households:
A. represent a cash transfer. B. are a part of the U.S. social insurance programs. C. represent a noncash transfer. D. conflict with the leaky-bucket analogy.
Economics