Author Question: In practice, money growth targeting was A) a good idea. B) a policy introduced in the U.S. in ... (Read 38 times)

mcmcdaniel · **on:** Jun 30, 2018

In practice, money growth targeting was

A) a good idea.
B) a policy introduced in the U.S. in the 1970s, which continues to the present.
C) better than interest rate targeting.
D) a failure.

Question 2

Suppose the required reserve ratio is 8 and the Fed purchases 100 million worth of Treasury bills from Wells Fargo. By how much is Wells Fargo able to increase its loans?

A) 8 million
B) 92 million
C) 100 million
D) 1.25 billion