Consider the Following Data About the Economy: Currency Outstanding (C)=

question 9

Multiple Choice

Consider the following data about the economy: currency outstanding (C) = $2 trillion, total deposits (D) = $1 trillion, total reserves (R) = $60 billion, and the required reserve ratio (RR ratio) = 5%. If the Federal Reserve increases the monetary base by $1 billion, the money supply will

• A)increase by $1.00 billion.
• B)decrease by $1.00 billion.
• C)increase by $1.46 billion.
• D)decrease by $1.46 billion.

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Definitions:

Java Program

A sequence of instructions written in the Java programming language that performs a specified task when executed on a Java Virtual Machine.

For Statement

A control flow statement used for iteration, allowing code to be executed repeatedly based on a given boolean condition.

Sum Numbers

The process or action of calculating the total or aggregate of a series of numbers.

Break Statements

In programming, these are used to exit loops or switch statements before they have naturally completed.