The Fed conducts an open market purchase of securities of $5,000.If the currency drain is 0 percent and the desired reserve ratio is 10 percent, then the total increase in the quantity of money is
A) $5,000.
B) $20,000.
C) $50,000.
D) $10,000.
E) $4,000.

Question

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The Answer of The Fed conducts an open market purchase of securities of $5,000.If the currency drain is 0 percent and the desired reserve ratio is 10 percent, then the total increase in the quantity of money is
A) $5,000.
B) $20,000.
C) $50,000.
D) $10,000.
E) $4,000.

The Fed Conducts an Open Market Purchase of Securities of $5,000.If