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Author Question: The money supply has increased from $1.4 trillion to $1.45 trillion. Which of the following could ... (Read 34 times)

oliviahorn72

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on: Apr 19, 2019

Question 1

Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 10%. If the Fed buys $10 million worth of government securities from the public, the change in the money supply will be


◦ $1 million.
◦ $10 million.
◦ $100 million.
◦ $110 million.

Question 2

The money supply has increased from $1.4 trillion to $1.45 trillion. Which of the following could have caused this increase?


◦ The Fed sold government securities to the public.
◦ Consumers who were holding money outside the banking system deposit this money.
◦ The Fed increased the discount rate.
◦ Commercial banks began to hold excess reserves.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by oliviahorn72 on Apr 19, 2019

flexer1n1

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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oliviahorn72

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Reply #2 on: Apr 19, 2019
Excellent


flexer1n1

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Reply #3 on: Apr 19, 2019
Great! Please up vote :D


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