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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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