The money supply in Macroland is currently 3,000,bank reserves are 250,currency held by the public is 500,and the banks' desired reserve-deposit ratio is 10%.Assuming that the values of the currency held by the public and the desired reserve-deposit ratio do not change,if the Central Bank of Macroland wishes to decrease the money supply to 2,500,then it should conduct an open-market _________ government bonds to/from the public.
A) purchase of 50
B) purchase of 250
C) purchase of 500
D) sale of 50
E) sale of 500

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The Answer of The money supply in Macroland is currently 3,000,bank reserves are 250,currency held by the public is 500,and the banks' desired reserve-deposit ratio is 10%.Assuming that the values of the currency held by the public and the desired reserve-deposit ratio do not change,if the Central Bank of Macroland wishes to decrease the money supply to 2,500,then it should conduct an open-market _________ government bonds to/from the public.
A) purchase of 50
B) purchase of 250
C) purchase of 500
D) sale of 50
E) sale of 500

The Money Supply in Macroland Is Currently 3,000,bank Reserves Are