subject
Business, 20.11.2020 14:00 bloodgif3386

Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to worth of U. S. government bonds. Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 25%. This increase in the reserve ratio causes the money multiplier to to . Under these conditions, the Fed would need to worth of U. S. government bonds in order to increase the money supply by $200. Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply? Check all that apply. The Fed cannot prevent banks from lending out required reserves. The Fed cannot control whether and to what extent banks hold excess reserves. The Fed cannot control the amount of money that households choose to hold as currency.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 12:00, kaylallangari549
In the united states, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. in the united kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. the united kingdom has a comparative advantage in the production of:
Answers: 2
image
Business, 22.06.2019 18:40, bella2331
Under t, the point (0,2) gets mapped to (3,0). t-1 (x, y) →
Answers: 3
image
Business, 22.06.2019 21:00, QueenMiah16
Sue peters is the controller at vroom, a car dealership. dale miller recently has been hired as the bookkeeper. dale wanted to attend a class in excel spreadsheets, so sue temporarily took over dale's duties, including overseeing a fund used for gas purchases before test drives. sue found a shortage in the fund and confronted dale when he returned to work. dale admitted that he occasionally uses the fund to pay for his own gas. sue estimated the shortage at $450. what should sue do?
Answers: 3
image
Business, 23.06.2019 11:10, chickennbutt0730
Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. danielle earns $55,000 per year and is in the 28 percent tax category. what annual tax savings does she get from her contribution? if her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar, how much will her employer put into her account this year?
Answers: 2
You know the right answer?
Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that b...

Questions in other subjects: