In the Simple Deposit Expansion Model,a Decline in Checkable Deposits

question 87

Multiple Choice

In the simple deposit expansion model,a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

• A)sold $200 in government bonds.
• B)sold $500 in government bonds.
• C)purchased $200 in government bonds.
• D)purchased $500 in government bonds.

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Definitions:

Nonverbal Cues

Signals or gestures used in communication that do not involve the use of words, including facial expressions, body language, and tone of voice.

Eye Contact

The act of looking directly into another person’s eyes, which can communicate various messages and emotions, depending on the cultural context.

Posture

The position or arrangement of the body and its parts, often associated with confidence or the lack thereof.

Disconfirming Response

A communication pattern that rejects or invalidates a person's self-concept.