If the Fed Sells $10 Billion of U

question 2

Multiple Choice

If the Fed sells $10 billion of U.S.bonds in the open market and the reserve requirement is 10 percent,M1 will eventually

• A)Increase by $100 billion.
• B)Increase by $1 billion.
• C)Decrease by $100 billion.
• D)Decrease by $1 billion.

---

Definitions:

Interactive Skills

The abilities required to effectively engage and communicate with others in a dynamic environment.

Prediction

The act of forecasting or estimating future events based on data or insights.

Drunk Drivers

Individuals who operate a vehicle while under the influence of alcohol beyond legal limits, posing risks to safety.

Common Sense

Sound practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by nearly all people.