If the required reserve ratio is 10 percent and the Fed buys a ...

[panfilo]

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]

Answer to Question 1

d

Answer to Question 2

c