If the Fed purchases $20,000 worth of securities and the required reserve ratio is 8%, by...
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If the Fed purchases $20,000 worth of securities and the required reserve ratio is 8%, by how much will deposits change (assuming no change in excess reserves or the nonbank public's currency holdings)? Select one: ⒸA. rise by $250,000 OB. rise by $160,000 OC. rise by $20,000 OD. decline by $20,000 If the Fed purchases $20,000 worth of securities and the required reserve ratio is 8%, by how much will deposits change (assuming no change in excess reserves or the nonbank public's currency holdings)? Select one: ⒸA. rise by $250,000 OB. rise by $160,000 OC. rise by $20,000 OD. decline by $20,000
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Answer rise by 250000 Explanation Secunns purchased 20000 Required reserverano 8 T... View the full answer
Related Book For
Macroeconomics Principles And Policy
ISBN: 9780324586213
11th Edition
Authors: William J. Baumol, Alan S. Blinder
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