1))If the Fed wanted to increase the money supply, it would make open maket
a) purchases and lower the discount rate
b)sales and lower the discount rate
c purchases and raise the discount rate
d) sales and raise the discount rate
2))If the reserve ratio is 100 persent, depositing $500 of paper money in a bank
a) will eventually increase the money supply by $500
b) leave the size of the money suply unchange
c)will eventually decrease the size of the money supply by $500
d) none of the above is correct.
Economy ...help MCx2
2008-11-27 2:53 am
回答 (2)
2008-12-01 7:36 pm
✔ 最佳答案
1)a because open market prrchases will buy back government bonds and inject money into the economy, thus increasing the money supply. Besides, Fed lower discount rate will encourage more banks to borrow money from Fed and increasing the money supply.2)b if the reserve ratio is 100 perent then bank must keep all deposits in the bank, thus, leave the size of the money supply unchanged.
2008-11-27 3:17 am
1b
2b if you are thinking M2 as money supply
if you are thinking M1 as money supply, then it depends if the account you are putting money in is a current a/c or saving a/c
2b if you are thinking M2 as money supply
if you are thinking M1 as money supply, then it depends if the account you are putting money in is a current a/c or saving a/c
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