The Fed buys $25,000 of government securities.The desired reserve ratio is 20 percent and the currency drain ratio is zero.What will be the change in the quantity of money?
A) $5,000
B) $20,000
C) $25,000
D) $125,000
E) $50,000
Correct Answer:
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Q263: The quantity of money decreases if
A)the currency
Q264: Suppose the currency drain ratio is 33.33
Q265: The Fed conducts an open market purchase
Q266: If the Fed buys $10 million of
Q267: The Fed buys $50,000 of government securities.The
Q269: The Fed purchases $1 million of U.S.government
Q270: If the desired reserve ratio is 10
Q271: If the currency drain ratio is 0.2
Q272: Which of the following reduces the money
Q273: Suppose the desired reserve ratio is 20
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