The Fed conducts an open market purchase of securities of 5,000. ...

[audragclark]

The Fed conducts an open market purchase of securities of 5,000. If the currency drain ratio is 0 percent and the desired reserve ratio is 10 percent, then the total increase in the quantity of money is
 
  A) 4,000. B) 5,000. C) 20,000. D) 50,000. E) 10,000.

Question 2

In the table above, how many jackets must Mary forgo for every dress she makes?
 
  A) 2/3 of a jacket
  B) 12 jackets
  C) 3/4 of a jacket
  D) 8 jackets
  E) 1 1/2 jackets

[jsm54321]

Answer to Question 1

D

Answer to Question 2

E