Author Question: If the Federal Reserve purchases 1 million in government securities in the open market, with a 25 ... (Read 66 times)

@Brianna17 · **on:** Jun 30, 2018

If the Federal Reserve purchases 1 million in government securities in the open market, with a 25 percent required reserve ratio on deposits, the maximum increase in deposits would be

a. 4 million.
b. 10 million.
c. 25 million.
d. -4 million.
e. none of the above

Question 2

As an economy grows and develops, the police powers of the government with respect to controlling, regulating and inspecting businesses and their output become increasingly more costly to uphold and protect.

Indicate whether the statement is true or false