subject
Business, 07.11.2019 21:31 cornpops4037

Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold any excess reserves. if the fed sells $1 million of government bonds, what is the effect on the economy’s reserves and money supply? now suppose the fed lowers the reserve requirement to 5 percent, but banks choose to hold another 5 percent of deposits as excess reserves. why might banks do so? what is the overall change in the money multiplier and the money supply as a result of these actions?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 06:20
About time delivery co. incurred the following costs related to trucks and vans used in operating its delivery service: classify each of the costs as a capital expenditure or a revenue expenditure. 1. changed the oil and greased the joints of all the trucks and vans. 2. changed the radiator fluid on a truck that had been in service for the past four years. 3. installed a hydraulic lift to a van. 4. installed security systems on four of the newer trucks. 5. overhaul the engine on one of the trucks purchased three years ago. 6. rebuilt the transmission on one of the vans that had been driven 40,000 miles. the van was no longer under warranty. 7. removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 8. repaired a flat tire on one of the vans. 9. replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 10. tinted the back and side windows of one of the vans to discourage theft of contents.
Answers: 1
question
Business, 22.06.2019 16:00
In macroeconomics, to study the aggregate means to study blank
Answers: 1
question
Business, 22.06.2019 22:40
Utilization will always be lower than efficiency because: a. effective capacity is greater than design capacityb. expected output is less than actual output.c. effective capacity equals design capacity.d. effective capacity is less than design capacity.e. expected output is less than rated capacity.
Answers: 3
question
Business, 23.06.2019 12:00
Whats a person that is involved in the business of buying and selling home
Answers: 2
You know the right answer?
Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold...
Questions
question
History, 21.07.2019 16:00
question
Mathematics, 21.07.2019 16:00
question
Mathematics, 21.07.2019 16:00
Questions on the website: 13722360