.400anduizleQuestion 2TestheNot yet answered Points out of 1 P Flag questionlaneSuppose that the required reserve ratio is 0.20. Furthermore, suppose thatthe banks in the banking system do not hold any excess reserve, and thatthe non-bank public only deposits their income into checking accounts(they do not hold cash). Under these assumptions, a $2 billion increase inincrease in total money supply.biycuia4.thbank reserves as a result in aSelect one:O A. $4 billion.OB. $10 billion.O C. $1 billion.D. $5 billion. Question 1Not yet answered Points out of 1 P Flag questionA reduction of U.S securities in the Fed's balance sheet results in a_inthe monetary base.Select one:O A. permanent reductionO B. temporary reductionO C. temporary increaseO D. permanent increase

The purchase and sell of the securities would result in the part of the part of the open market…

Answered: A reduction of U.S securities in the…

A reduction of U.S securities in the Fed's balance sheet results in a in the monetary base. Select one: O A. permanent reduction B. temporary reduction O C. temporary increase O D. permanent increase

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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