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

question 125

Multiple Choice

In the simple deposit expansion model,a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed

• A)sold $250 in government bonds.
• B)sold $100 in government bonds.
• C)sold $50 in government bonds.
• D)purchased $100 in government bonds.

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Definitions:

Laboratory Conditions

Controlled environments where experiments are conducted under specific and standardized settings.

Sound

Audible waves that pass through the air or other materials and are detectable when they make contact with an individual's or an animal's auditory system.

Air Pressure

The force exerted onto a surface by the weight of the air above that surface in the atmosphere of Earth.

Auditory System

is the sensory system that is responsible for the perception of sound, including its reception, transmission, and processing.