What is the ultimate effect on the money supply

Reference no: EM13184282

Assume that the required reserve ratio is 10%. If the Federal Reserve buys a $10,000 government bond from an individual in the economy, what is the initial effect on the money supply? What is the ultimate effect on the money supply?

Reference no: EM13184282

Questions Cloud

Chinas policies toward the foreign exchange market : From the point of view of China's government and the well-being of the Chinese economy and people, what are the main reasons for the Chinese government to allow more flexibility and (probably) substantial yuan appreciation?

Define a certain substance has a heat of vaporization : A certain substance has a heat of vaporization of 44.76 KJ/mol. At what kelvin temperature will the vapor pressure be 4.00 times higher than

Hire is the ppropriate to do food safety training : What time after hire is the most appropriate to do food safety training?

Compute the enthalpy change in oxidizing : Calculate the enthalpy change in oxidizing this mixture in air if the reactants are at 298 K and the products are at 1200 K.

What is the ultimate effect on the money supply : Assume that the required reserve ratio is 10%. If the Federal Reserve buys a $10,000 government bond from an individual in the economy, what is the initial effect on the money supply. What is the ultimate effect on the money supply

Describe the problem of us implications for bio-diversity : Describe the problem of U.S. wetlands loss and the implications for bio-diversity. Briefly contrast how a command and control policy approach would differ in intent and implementation from a market approach. Which is used more prevalently, and why

Make in regard to pricing and production : Consider an American automaker like GM with production facilities in 50 countries and sales in almost 200 countries! To maximize profits, what decisions does GM have to make in regard to pricing and production?

Blue-ribbon committee selects judicial nominees : What is it called when a blue-ribbon committee selects judicial nominees who are then appointed by the governor and must finally run for retention in office

Explain how you would make phosphate buffer : Describe how you would make 4 liters of a 0.075 M phosphate buffer at pH of 7.15 without using a pH meter, if the only materials

User Account

All Pages