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Author Question: If the required reserve ratio is 10 percent and the Fed buys a 5,000 security from a depository ... (Read 85 times)

panfilo

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on: Jun 30, 2018
If the required reserve ratio is 10 percent and the Fed buys a 5,000 security from a depository institution, the money supply:
 a. increases by 15,000.
  b. increases by 5,000.
 c. decreases by 5,000.
  d. increases by 50,000.
  e. decreases by 50,000.

Question 2

The aggregate expenditure line shows total planned spending at each _____.
 a. consumption level
 b. investment level
 c. income level, holding the price level constant
 d. price level, holding the level of income constant
  e. interest rate, holding the price level constant


Tabitha_2016

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


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