This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: During a period of inflation, the Fed is likely to: a. sell government securities to banks in order ... (Read 15 times)

Pineapplelove6

  • Hero Member
  • *****
  • Posts: 560
on: Jun 30, 2018
During a period of inflation, the Fed is likely to:
 a. sell government securities to banks in order to reduce the amount of loanable funds.
  b. buy government securities from banks in order to reduce the amount of loanable funds.
  c. raise taxes in order to reduce the money supply.
  d. cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out.
  e. cut the discount rate in order to increase the affordability of loanable funds.

Question 2

If the Fed buys 10 million dollars in government securities, and the required reserve ratio is 20 percent, the banking system is able to expand the money supply by:
 a. 10 million.
  b. 8 million.
  c. 2 million.
  d. 40 million.
  e. 50 million.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joanwhite

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

e


Pineapplelove6

  • Member
  • Posts: 560
Reply 2 on: Jun 30, 2018
Gracias!

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th
Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period
If drug elimination mechanisms become saturated, a drug may exhibit zero-order elimination. If drug elimination mechanisms become saturated, a drug may exhibit zero-order elimination.
Embryonic Period - organogenesis Embryonic Period - organogenesis
Embryonic Period Embryonic Period
Embryonic Period - 8th week Embryonic Period - 8th week
Video: Congenital Heart Defects Animation

For a complete list of videos, visit our video library