This topic contains a solution. Click here to go to the answer

Author Question: Suppose the Fed buys 1 billion worth of bonds and the required reserve ratio is 5. In theoretical ... (Read 35 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
Suppose the Fed buys 1 billion worth of bonds and the required reserve ratio is 5. In theoretical limit, the money supply could
 
  A) decrease by 5 billion.
  B) increase by 5 billion.
  C) increase by 20 billion.
  D) decrease by 20 billion.

Question 2

Economic theory assumes people will not do what is in the interest of all unless it is in the interest of
 
  A) each.
  B) humanity.
  C) the government.
  D) the public.
  E) their own pocketbooks.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

parshano

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

C

Answer to Question 2

A




pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
:D TYSM


Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

For a complete list of videos, visit our video library