28) If the required reserve ratio is 10% and the Federal Reserve purchases $50 million in treasury bonds on the open market, how could the money supply be impacted? a) Increase by a maximum amount of $500 million b) Increase by a maximum amount of $50 million c) Decrease by a maximum amount of $500 million d) Decrease by a maximum amount of $50 million

ENGR.ECONOMIC ANALYSIS
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28) If the required reserve ratio is 10% and the Federal Reserve purchases $50 million in
treasury bonds on the open market, how could the money supply be impacted?
a) Increase by a maximum amount of $500 million
b) Increase by a maximum amount of $50 million
c) Decrease by a maximum amount of $500 million
d) Decrease by a maximum amount of $50 million
29) What is the most likely outcome of expansionary monetary policy?
a) A decrease in the quantity of money, higher interest rates, and increased aggregate
demand.
b) An increase in the quantity of money, higher interest rates, and increased aggregate
demand.
c) A decrease in the quantity of money, lower interest rates, and decreased aggregate
demand..
d) An increase in the quantity of money, lower interest rates, and increased aggregate
demand.
Transcribed Image Text:28) If the required reserve ratio is 10% and the Federal Reserve purchases $50 million in treasury bonds on the open market, how could the money supply be impacted? a) Increase by a maximum amount of $500 million b) Increase by a maximum amount of $50 million c) Decrease by a maximum amount of $500 million d) Decrease by a maximum amount of $50 million 29) What is the most likely outcome of expansionary monetary policy? a) A decrease in the quantity of money, higher interest rates, and increased aggregate demand. b) An increase in the quantity of money, higher interest rates, and increased aggregate demand. c) A decrease in the quantity of money, lower interest rates, and decreased aggregate demand.. d) An increase in the quantity of money, lower interest rates, and increased aggregate demand.
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