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In the simple deposit expansion model a decline in checkable deposits of $1000 when the required reserve ratio is equal to 20 percent implies that the Fed sold $200 in government bonds

1) In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

A) sold $200 in government bonds.

B) sold $500 in government bonds.

C) purchased $200 in government bonds.

D) purchased $500 in government bonds.

2) In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

A) sold $1,000 in government bonds.

B) sold $100 in government bonds.

C) purchased $1,000 in government bonds.

D) purchased $100 in government bonds.

3) In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed

A) sold $500 in government bonds.

B) sold $50 in government bonds.

C) purchased $50 in government bonds.

D) purchased $500 in government bonds.

4) In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed

A) sold $250 in government bonds.

B) sold $100 in government bonds.

C) sold $50 in government bonds.

D) purchased $100 in government bonds.

Jun 17 2020 View more View Less

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