Choose the correct answer: The nation’s money supply will increase if (all else equal) There is an increase OR decrease in the currency to deposit ratio? There is an increase OR decrease in the reserve to deposit ratio? The Fed sells OR buys Treasuries on the open market?

Choose the correct answer: The nation’s money supply will increase if (all else equal) There is an increase OR decrease in the currency to deposit ratio? There is an increase OR decrease in the reserve to deposit ratio? The Fed sells OR buys Treasuries on the open market?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: The Federal Reserve System

Section: Chapter Questions

Problem 3QP

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Choose the correct answer: The nation’s money supply will increase if (all else equal)

1. There is an increase OR decrease in the currency to deposit ratio?
2. There is an increase OR decrease in the reserve to deposit ratio?
3. The Fed sells OR buys Treasuries on the open market?

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