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Other Fields Homework Help Economics Topic started by: Scribs on Jul 27, 2017



Title: Suppose an individual sells $500 worth of securities to the Fed and puts the proceeds of this sale ...
Post by: Scribs on Jul 27, 2017
Suppose an individual sells $500 worth of securities to the Fed and puts the proceeds of this sale under his mattress. Then,
A) the money supply will be unaffected.
B) the money supply will rise by $500.
C) the supply of high-powered money will rise by $500 but nothing will happen to the money supply.
D) demand deposits will rise by some multiple of $500, depending on the bank reserve-holding ratio.


Title: Re: Suppose an individual sells $500 worth of securities to the Fed and puts the proceeds of this ...
Post by: thecrom on Jul 27, 2017
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Title: Re: Suppose an individual sells $500 worth of securities to the Fed and puts the proceeds of this sale ...
Post by: Scribs on Nov 8, 2017
Thank you for helping me all throughout my semester