Suppose the Fed buys 1 billion worth of bonds and the required ...

[pragya sharda]

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.

[parshano]

Answer to Question 1

C

Answer to Question 2

A

[pragya sharda]

Thanks for the timely response, appreciate it

[tkempin]

Great answer, keep it coming