In Macroland, currency held by the public is 1,000 econs, bank reserves are 100 econs, and the desired reserve/deposit ratio is 25 percent. If the Central Bank prints an additional 300 econs and uses this new currency to buy government bonds from the public, the money supply in Macroland will increase from. econs, assuming that the public does not wish to change econs to the amount of currency it holds. Multiple Choice O 1,400; 1,200 O 1,400; 2,600 2,500; 3,700
In Macroland, currency held by the public is 1,000 econs, bank reserves are 100 econs, and the desired reserve/deposit ratio is 25 percent. If the Central Bank prints an additional 300 econs and uses this new currency to buy government bonds from the public, the money supply in Macroland will increase from. econs, assuming that the public does not wish to change econs to the amount of currency it holds. Multiple Choice O 1,400; 1,200 O 1,400; 2,600 2,500; 3,700
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 18CQ
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