Assume that the reserve ratio is 10%. If the Fed buys 2 million dollars worth bonds from Chase Bank, what is the resulting change in checkable deposits? O Checkable deposits increase by 200 thousand Checkable deposits increase by 18 million Checkable deposits increase by 20 million O Checkable deposits decrease by 200 thousand
Assume that the reserve ratio is 10%. If the Fed buys 2 million dollars worth bonds from Chase Bank, what is the resulting change in checkable deposits? O Checkable deposits increase by 200 thousand Checkable deposits increase by 18 million Checkable deposits increase by 20 million O Checkable deposits decrease by 200 thousand
Chapter1: Making Economics Decisions
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![Assume that the reserve ratio is 10%. If the Fed buys 2 million dollars worth
bonds from Chase Bank, what is the resulting change in checkable deposits?
Checkable deposits increase by 200 thousand
O Checkable deposits increase by 18 million
Checkable deposits increase by 20 million
O Checkable deposits decrease by 200 thousand](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F487e3069-51ac-4ad2-b098-f10c1b1345ef%2Fad202c5d-b68d-4c0a-91c3-188db7332c75%2Flcw3f0q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that the reserve ratio is 10%. If the Fed buys 2 million dollars worth
bonds from Chase Bank, what is the resulting change in checkable deposits?
Checkable deposits increase by 200 thousand
O Checkable deposits increase by 18 million
Checkable deposits increase by 20 million
O Checkable deposits decrease by 200 thousand
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