Table 13.1 Refer to Table 13.1.Assume a reserve requirement of 8 percent.What is the maximum potential increase in the money supply from the Fed's purchase of $400 worth of government securities?
A)$62, 500
B)$2, 800
C)$3, 200
D)$4, 600
E)$400

Question

Table 13.1  Refer to Table 13.1.Assume a reserve requirement of 8 percent.What is the maximum potential increase in the money supply from the Fed's purchase of $400 worth of government securities?
A)$62, 500 
B)$2, 800 
C)$3, 200 
D)$4, 600 
E)$400

Quizplus · Accepted Answer

The Answer of Table 13.1  Refer to Table 13.1.Assume a reserve requirement of 8 percent.What is the maximum potential increase in the money supply from the Fed's purchase of $400 worth of government securities?
A)$62, 500 
B)$2, 800 
C)$3, 200 
D)$4, 600 
E)$400

Table 131 Refer to Table 13